Question: Consider the following two-period problem for the representative consumer Y1 = 50 10 Y2 = 50 T2= 6 r= 0.10 C1 = consumption in the

Consider the following two-period problem for the representative consumer Y1 =

Consider the following two-period problem for the representative consumer Y1 = 50 10 Y2 = 50 T2= 6 r= 0.10 C1 = consumption in the first period C2 = consumption in the second period S = saving in the first period U(C1, C2) = 3 In(C1) + 2 In(C2) What is the optimal saving, S*, that maximizes the representative consumer's lifetime utility? O A. +12 OB. +8 O C. -8 OD. -2 O E. None of the above Consider the following two-period problem for the representative consumer Y1 = 50 10 Y2 = 50 T2= 6 r= 0.10 C1 = consumption in the first period C2 = consumption in the second period S = saving in the first period U(C1, C2) = 3 In(C1) + 2 In(C2) What is the optimal saving, S*, that maximizes the representative consumer's lifetime utility? O A. +12 OB. +8 O C. -8 OD. -2 O E. None of the above

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