Materials from Class - 2020-9 > Mon 10/26

Daily exercise 1 for 10/26

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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Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 10/29/2020