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Business, 19.11.2019 20:31 Mgarcia325

Suppose that you have $100 today and expect to receive $100 one year from today. your money market
account pays an annual interest rate of 25%, and you may borrow money at that interest rate. com e
budget constraint between “spending today” on the horizontal axis and “spending a year from today on
the vertical axis. what is the slope of this budget constraint?
-0.75
-1.00
-1.25
-2.25

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Answers: 1

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Suppose that you have $100 today and expect to receive $100 one year from today. your money market
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