Assume Yaein has well-behaved preferences over current and future consumption and both are normal goods. Yaein is currently saving money.

Assume Yaein has well-behaved preferences over current and future consumption and both are normal goods. Yaein is currently saving money. If the interest rate falls, is it possible that Yaein could become a borrower?  Using budget lines and indifference curves, graph your answer. Explain your answer in words carefully. 

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"FIRST15"

Order Now
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *