Question: 2. [25 Points] A consumer will only live for two periods. In each period 1' = 1, 2, the consumer has income 1m > D

 2. [25 Points] A consumer will only live for two periods.

2. [25 Points] A consumer will only live for two periods. In each period 1' = 1, 2, the consumer has income 1m > D and makes a consumption choice m1; 2 0. The price of the consumption good is $1 in both periods. The consumer can save her period 1 income or borrow against her period 2 income at interest rate 7' > 0. The 1 1 consumer's utility from consumption path ($1,322) is .1215 + $33.3

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