Consider an individual confronted by the net cash flows

in period-0 and

in period-1. Assume the individual can borrow and lend at the same constant interest rate

. She may borrow at most

in period-0 and increase current consumption to

. (6)

In period-1, the loan must be repaid with accrued interest. The amount is:

, (7)

which is exactly the amount available to her in period-1. Consumption in period-1 is zero.

The present value (PV) of this consumption mimx is given by:

(8)

where PV is the maximum the individual can consume in period-0.

Next, (8) is rewritten as:

which is a ________________________ that indicates for a given PV (of consumption) the set of possible consumption bundles (

).

By borrowing and __________________ at

, the consumer can move the _____________________ as she wishes, adjusting the consumption bundle without changing the ______, hence the name the money-market line.

**Above is what is written on my notes.**
I believe the above relates to the question I already orignally posted.

Anyway, any help would be much appreciated!