B. Class questions Class questions will be distributed at. the start. of the support and feedback class, to be worked on during the class, alone or in small groups. Your tutor will discuss your answers before the end of the class. Make sure you make good notes, because written answers will not. be circulated. 1. Consider a two-period model of a small open economy with a single good each period and no investment. Let preferences of the representative household be described by the utility function: motes = Mam/52- The parameter ,3 is known as the subjective discount factor. It measures the consumerOs degree of in'ipatience in the sense that the smaller is ,3, the higher is the weight the consumer assigns to present. consumption relative to future consumption. Assume that [3' : 1/1.1. The representative household has initial net. foreign wealth of (1 +111) 5 : 1, with m 0.1, and is endowed with Q1 5 units of goods in period 1 and Q2 10 units in period 2. The world interest rate paid on assets held from period 1 to period 2, 3'\