Question: 29) Consider the following two-period problem for the representative consumer Y1 = 10 T1 = 2 Y2 = 54 T2 = 12 r = 0.05

29) Consider the following two-period problem for the representative consumer Y1 = 10 T1 = 2 Y2 = 54 T2 = 12 r = 0.05 C1 = consumption in the first period C2 = consumption in the second period S = saving in the first period U(CI, C2) = In(C1) + In(C2) What is the optimal saving, S*, that maximizes the representative consumer's lifetime utility? A) 0 B) 16 C) 16 17.2 E) None of above

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