Question: 4. Consider the consumption-investment problem under autarky. In class, we showed that the solution to this problem was given by the equation below. In two

4. Consider the consumption-investment problem under autarky. In class, we showed that the solution to this problem was given by the equation below. In two to four sentences, explain the economic intuition behind this equation.

4. Consider the consumption-investment problem under autarky. In class, we showed

dIdFC2U=C1U dIdFC2U=C1U

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