32.3k views
4 votes
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​

User Taapo
by
8.0k points

1 Answer

3 votes

Answer:

Its C. 1.25

Step-by-step explanation:

Coursehero

User Tarta
by
7.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories