1. Consumption pattern over time is shaped by 3 factors: log utility function, discount factor beta, and interest rate i. A. True B. False

2. A smaller discount factor beta leads consumption to be back-loaded. A. True B. False

3. A higher interest rate leads consumption to be front-loaded. A. True B. False

4. Consumption is perfectly balanced if beta*(1+i)=1 A. True B. False

5. Assume beta*(1+i)=1. y1=100 y2=20. beta=0.8.

(1) c1=______ (2) c2=______

6. Assume beta*(1+i)=1. y1=100 y2=20. i=10% c1=______