Question: Can u help me with c,d, and e (a) Graphically demonstrate the Fisher separation theorem for the case where an individual ends up borrowing in

Can u help me with c,d, and e

(a) Graphically demonstrate the Fisher separation theorem for the case where an individual ends up borrowing in capital market. Please label the following points on the graph: initial endowment (Y1, Y2); optimal production/investment (P1, P2); optimal consumption (C1, C2). (b) What are the conditions (mathematically, i.e., what should be MRS or MRT) for getting (P1, P2) and (C1, C2)? Please briefly describe the intuitions for each condition. (c) What is the present value of (1) initial wealth and (2) wealth after optimizing? How much is she borrowing? How much is she going to repay in the second period? (d) Describe the relationship between NPV rule as a project selection rule for a firm and the Fisher Separation Theorem you have demonstrated in part (a). (e) Describe the role of capital market in a world of certainty

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