Question: Consider the following two-period model U(C, C') = min{C, 0.8C'} r = 0.05 Y = 50 T = 20 Y' = 200 T' = 50

Consider the following two-period model U(C, C') = min{C, 0.8C'}

r = 0.05

Y = 50

T = 20

Y' = 200

T' = 50

Ques: Find the optimal C, C', and S?

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