[Solved] Suppose That You Have $100 Today and Expect to Receive

Question 350
Multiple Choice

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

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