An individual has an initial endowment of 200 bushels of wheat. They decide to lend 80 bushels to a neighbor, who agrees to repay the loan with 25% interest in the next period. What is the lender's consumption bundle, representing their consumption now and consumption later?

Lender's Consumption Decision

An individual starts with an endowment of 120 units of a good. They lend 50 units to another person at an interest rate of 20%. The lender's resulting consumption bundle is (70 now, 50 later).

Calculating Loan Interest Rate from Consumption

Calculating a Lender's Consumption Bundle

An individual has an initial endowment of 1,000 units of a resource. They are considering several opportunities to lend a portion of this resource to others. If their primary goal is to maximize their consumption in the next period, which of the following options should they choose?

The Intertemporal Consumption Trade-off for a Lender

An individual with an initial endowment of goods decides to become a lender. Match each change in the lending scenario to its most direct effect on the lender's consumption bundle, which consists of 'consumption now' and 'consumption later'.

Analyzing Changes to a Lender's Consumption Bundle

An individual starts with an endowment of 150 units of a good. They lend 60 units to a friend at an interest rate of 15%. Their consumption in the current period is 90 units, and their consumption in the next period will be ____ units.