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1. Explain how the intertemporal budget constraint and indi§erence curves are used to derive a consumerís...

1. Explain how the intertemporal budget constraint and indi§erence curves are used to derive a consumerís optimal choice of current and future consumption.

2. Explain how the desired levels of capital and investment are a§ected by changes in the expected marginal product of capital, the user cost of capital, and taxes.

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