Problem
Smith lives in a world with two time periods. His income in each period, which he receives at the beginning of each period, is $210. If the interest rate, expressed as a fraction, is 0.05 per time period, what is the present value of his lifetime income? Draw his intertemporal budget constraint. On the same axes, draw Smith's intertemporal budget constraint when r = 0.20.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.