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Assume Yaein has well-behaved preferences over current and future consumption and both are normal goods. Yaein is currently saving money.
Assume Yaein has well-behaved preferences over current and future consumption and both are normal goods. Yaein is currently saving money. If the interest rate falls, is it possible that Yaein could become a borrower? Using budget lines and indifference curves, graph your answer. Explain your answer in words carefully.