Suppose that Annie's real income this year is $150 and next year it will be $100. Assume that the real interest rate is 10%. How much can Annie consume this year if she borrows against all of her income next year
Suppose that Annie's real income this year is $150 and next year it will be $100. Assume that the real interest rate is 10%. How much can Annie consume this year if she borrows against all of her income next year
Chapter13: Inflation
Section: Chapter Questions
Problem 12SQ
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Suppose that Annie's real income this year is $150 and next year it will be $100. Assume that the real interest rate is 10%.
How much can Annie consume this year if she borrows against all of her income next year? Round to the nearest whole dollar, type without units (e.g. 10).
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