Suppose that U(c, c) = ln c + ln c,where > 0. Determine consumption in

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Suppose that U(c, c′) = ln c + β ln c,where β > 0. Determine consumption in the current and future periods for the consumer, and interpret your solutions in terms of income and substitution effects.

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Macroeconomics

ISBN: 978-0134472119

6th Edition

Authors: Stephen D. Williamson

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