Business, 25.03.2021 18:40 ThunderThighsM8

Seth could consume $120 next year if he saved all his current earnings. He expects to earn nothing next year. The intertemporal budget constraint for Seth is given by the equation C2 = 120 - 1.2*C1, where C1 = possible consumption in year 1 and C2 = possible consumption in year 2. Assume that C1 is on the horizontal axis and C2 is on the vertical axis. What is the present value of the total consumption available? Question 2 options: a) 100 b) none of the above. c) 120 d) 140

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Seth could consume $120 next year if he saved all his current earnings. He expects to earn nothing n...

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