Suppose that you have $100 today and expect to receive $100 one year from today. Your money market account pays an annual interest rate of 25%, and you may borrow money at that interest rate. Consider the budget constraint between "spending today" on the horizontal axis and "spending a year from today" on the vertical axis. What is the slope of this budget constraint?
a. -0.75
b. -1.00
c. -1.25
d. -2.25
c
Economics
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Answer the following statement true (T) or false (F)
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Economics