The Maxwell School
Syracuse University
Syracuse University
Please compute the PVI and FVI for each of the combinations of `I_0`, `I_1` and `r` below. Then draw three diagrams showing the corresponding intertemporal budget constraints. Be sure to show each endowment, the X and Y intercepts, and indicate the slope of the BC.
Case | `I_0` | `I_1` | `r` | `PVI` | `FVI` |
A | 80,000 | 132,000 | 10% | ||
B |
0 | 252,000 | 5% | ||
C | 150,000 | 0 | 20% |
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