If the budget line rotates from blue to red. Consumption Next Year B Consumption Today The interest rate has increased. The interest rate has decreased. The interest rate has not changed. If the person borrowed a $1 today they would owe more in the future. O If the person borrowed a $1 today they would owe less in the future. If the person saved a $1 today they would have more money in the future on the red budget line compared to the blue budget line. If the person saved a $1 today they would have less money in the future on the red budget line compared to the blue budget line.

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