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EC311 · Intermediate Microeconomics

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EC311 / TOPIC 15

5.2 Real investment and consumption

One idea · follow the reasoning · then practise1 / 9

01

How much real investment is optimal when borrowing and lending are available?

Two clocks, rising stacks of coins, and a balance holding a bank building and a blue geometric object
VISUAL NOTE · Time and risk Invest first, then choose consumption

Today’s resources can fund consumption, a productive project or lending.