Question: 1. Why do consumers save? 2. How do consumers save in the two-period model? 3. What factors are important to a consumer in making his

1. Why do consumers save? 2. How do consumers save in the two-period model? 3. What factors are important to a consumer in making his or her consumption-savings decision? 4. Show how to derive the consumer's lifetime budget constraint from the consumer's current-period and future-period budget constraints. 5. State the Ricardian equivalence theorem

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