consumption. Jack earns $100 in the first period and $100 in the second period. Jill earns nothing in the first period and $210 in the second period. Both can borrow or lend at the interest rate r.  a. You observe both Jack and Jill consuming $100 in the first period and $100 in the second period. What is the interest rate r?    b. Suppose the interest rate increases. What will happen to Jack’s consumption

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