Consider Problem 8 16 Change something about the model (the natural candidates are the utility function, the value of , the value of r, and the distribution of Y) and find the new V() and C() functions Discuss how the change in assumptions changes the results, and explain the intuition

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Question: Consider Problem 8.16. Change something about the model (the natural candidates are the utility function, the value of , the value of r, and the

Consider Problem 8.16.

Change something about the model (the natural candidates are the utility function, the value of β, the value of r, and the distribution of Y) and find the new V(•) and C(•) functions. Discuss how the change in assumptions changes the results, and explain the intuition.

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