Marco's Consumption Bundle as a Lender in the Marco-Julia Model
Following the loan of 50 units of grain to Julia at a 10% interest rate, Marco's consumption pattern is defined by what he retains and what he will receive. Having started with 100 units of grain, he is left with 50 units for consumption in the current period. In the next period, he receives the repayment of 55 units, which constitutes his consumption for that period. Therefore, the loan results in a consumption bundle of (50 now, 55 later) for Marco.
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Marco's Consumption Bundle as a Lender in the Marco-Julia Model
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