Kira eams $80,000 in the current period and will earn $80,000 in the future period. Assuming that these are the only two periods, and that banks in her country borrow and lend at an interest rate r= 10: 1. What is the horizontal intercept of her budget constraint? 2. What is the vortical intercept of her budget constraint? 3. What is the stope of her budget constraint? 4. Write the equation for her budget constraint in slope-intercept form.
Kira eams $80,000 in the current period and will earn $80,000 in the future period. Assuming that these are the only two periods, and that banks in her country borrow and lend at an interest rate r= 10: 1. What is the horizontal intercept of her budget constraint? 2. What is the vortical intercept of her budget constraint? 3. What is the stope of her budget constraint? 4. Write the equation for her budget constraint in slope-intercept form.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Kira eams $80,000 in the current period and will earn $80,000 in the future period. Assuming that these are the only two periods, and that
banks in her country borrow and lend at an interest rate r= 10:
1. What is the horizontal intercept of her budget constraint?
2. What is the vertical intercept of her budget constraint?
3. What is the stope of her budget constraint?
4. Write the equation for her budget constraint in slope-intercept form.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0751f1f3-d30d-40f2-8b91-f13654f52679%2F32b98649-4f1a-4e90-a4b9-3920a6926286%2Fjgpp9cn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Kira eams $80,000 in the current period and will earn $80,000 in the future period. Assuming that these are the only two periods, and that
banks in her country borrow and lend at an interest rate r= 10:
1. What is the horizontal intercept of her budget constraint?
2. What is the vertical intercept of her budget constraint?
3. What is the stope of her budget constraint?
4. Write the equation for her budget constraint in slope-intercept form.
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