Question: I don't get this problem from the Money and Banking Theory class (zoom)... Please help T_T... Two period optimization problem ... D Into Given when

 I don't get this problem from the Money and Banking Theory

I don't get this problem from the Money and Banking Theory class (zoom)...

Please help T_T...

class (zoom)...Please help T_T... Two period optimization problem ... D Into Given

Two period optimization problem ... D Into Given when I is given by U(X ) = 5. * ' - n - 1 it n E EO, DU ( 1 0 ) In X if n = 1 represents consumption of good i E 21, 23, BE[O, 1] = the discount factor B PERIf = Relative Price of good ? in terms of good 1 YERit = income expressed in term of good I An arbitrary n 70 ( 1 ) find the bundle (X, *, 2(2*) that solves max ( X6 , , x 2 ) ER + U ( 7 ( , ) + Bulxz ), 5. t. 76, + PZz = y ( 2 ) solution (x, ", x2*) depends on the parameters (n, B, P, Y ), which the consumer takes as given. Derive the expression for d* * dp and - aP

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