10). Tyler has income of m1=10, this year and an income of m2=10,00 next year. Initially, when the interest rate is r=0, his budget constraint has a vertical intercept at (0, 20000) and a horizontal intercept at (20000, 0). If the interest rate were to increase to r=0.05, what is the only point that the old budget line and new budget line would share? a) (0,20000) b) (10000,10000) c) (20000,0) d) (20000,20000) e) (10500.10500)

10). Tyler has income of m1=10, this year and an income of m2=10,00 next year. Initially, when the interest rate is r=0, his budget constraint has a vertical intercept at (0, 20000) and a horizontal intercept at (20000, 0). If the interest rate were to increase to r=0.05, what is the only point that the old budget line and new budget line would share? a) (0,20000) b) (10000,10000) c) (20000,0) d) (20000,20000) e) (10500.10500)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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