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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
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1 Answer

3 votes

Answer:

Its C. 1.25

Step-by-step explanation:

Coursehero

User Tarta
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