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Business, 26.02.2021 04:10 LindaCat78

If a consumer views a unit of consumption in period 1 as a perfect substitute for a unit of consumption in period 2 and if the real interest rate is positive, the consumer will: a) Consume only in period 1. b) Consume only in period 2. c) Consume equal amounts in each period. d) Consume more in period 1 than in period 2 if income elasticity exceeds 1, else would consume more in period 2 than in period 1. e) Equalize expenditures but not consumption in the two periods.

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