Question: I need answer immediately Monica's utility function is U(1, Ca) - min[c,, Ca], where c, is the number of dollars spent for her consumption in

I need answer immediately

I need answer immediately Monica's utility function is U(1, Ca) - min[c,,

Monica's utility function is U(1, Ca) - min[c,, Ca], where c, is the number of dollars spent for her consumption in period 1 and cz is the number of dollars spent for her consumption in period 2. She has an income of 440$ in period 1 and 880$ in period 2. The interest rate is 25%. a) What is her budget constraint in terms of future value (FV)? [2p] b) What is the number of dollars that Monica spends on consumption in period 1 and period 27 (4p] () Write Monica's budget equation in terms of Future Value if there is an inflation of 15%. [2p] d) If inflation is equal to isis, what is the exact real interest rate (in %)? [2p]

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