Question: Annas preferences are described by a time-separable log-utility function with a constant discount factor and the risk free interest rate is 10%. Her consumption remains
Annas preferences are described by a time-separable log-utility function with a constant discount factor and the risk free interest rate is 10%. Her consumption remains constant over time. What does this observation imply for her time preference?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
