JNU 1997-2001 Doubts

[Anjali]

Tsuki for 14 th
MRS=0.6
And the price ratio = 0.56
MRS is greater which means budget line will be flatter , so definitely just x1
But here the difference ( 0.6 and 0.56 ) is very marginal , so can't we ignore it ? Can't we not take the case where infinite bundles are possible ?

[Anjali]

In ques 7th , what is 0.eY ? Iam not clear with that term ?
And what are net invisible earnings from abroad ? How do we use them in such ques ?

[Homer Simpson]

you cant ignore that difference, besides MU spent on the last dollar is more from x1 anyway. for the other one, 0.e would probably be c. it aids in getting to the multiplier value.