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Assume that Jeannie Drago is trying to allocate her consumption over two periods. Jeannie's budget constraint is C1 + C2/(1 + r) = Y1 + Y2/(1 + r),...

Assume that Jeannie Drago is trying to allocate her consumption over two periods. Jeannie's budget constraint is C1 + C2/(1 + r) = Y1 + Y2/(1 + r), where the real interest rate r is 1 (100 percent). Jeannie's preferences are to have equal consumption each period.
Suppose Y1 = $1 million and Y2 = 0. What are C1 and C2?

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