Question: a. 7. Consider a consumer with utility function u(x) = ln x, for the income x, he enjoys in period t. Assume that he receives

a. 7. Consider a consumer with utility function u(x) = ln

a. 7. Consider a consumer with utility function u(x) = ln x, for the income x, he enjoys in period t. Assume that he receives no income in the first two periods, but receives an income w> 0 in the third period. In addition, this consumer discounts his income stream (XO, X1, x2) according to u(x, X1, x2)= In xo + B8 In x + B8? In x2 where 8 (0, 1) denotes his discount factor, and B 0 in the third period. In addition, this consumer discounts his income stream (XO, X1, x2) according to u(x, X1, x2)= In xo + B8 In x + B8? In x2 where 8 (0, 1) denotes his discount factor, and B

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