1. With the aid of diagrams, show that when r↓ , the utility of the consumers...

1. With the aid of diagrams, show that when r↓ , the utility of the consumers who have savings (in the first period) will be higher and the utility of the consumers who borrow (in the first period) will be lower.

2. Will an orange producer consumes fewer oranges when price of orange goes down?

Expert Solution

Rahul Sunny answered 2 years ago

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