Question: Double-checking my answer for b). Any help with that would be great! [8] Nila has the utility function U(c1,cz) = C35 + 1.1cg'5 where cl

Double-checking my answer for b). Any help with that would be great!

Double-checking my answer for b). Any help with that would be great!

[8] Nila has the utility function U(c1,cz) = C35 + 1.1cg'5 where cl and c2 are her consumption in periods 1 and 2, respectively. She will earn $100 in period 1 and $110 in period 2. She can borrow or save at an interest rate of 10% and the price of the consumption good is $1 in each period. a. [2] Draw her budget line on a graph. (Note: Make sure to label everything clearly, including the equation for her budget line and intercepts). b. [4] Solve for her optimal level of consumption in each period. Is she a saver or borrower? Add an indifference curve that depicts her optimal choice to your diagram from part(b). c. [2] Is it fair to say that Nila values future consumption more than current consumption? Briefly, explain your reasoning

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