ENGR.ECONOMIC ANALYSIS
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Author: NEWNAN
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Transcribed Image Text:Exercise 5.2
Given the intertemporal production possibilities frontier to the right.
Point A represents a production combination of present and future goods.
Using the point drawing tool, show a production combination consistent with a decrease in the real interest rate. Label
this point 'B'.
Carefully follow the instructions above and only draw the required object.
Selected:
Point tool
*
Delete Clear
Futurn Consumption
?
•
FC₂
(0,9.93)
...........
A
PC
Present Consumption
Q
Q
G
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