Question: In particular, suppose that the consumer has a logarithmic utility function and a lifetime budget constraint where the government taxes a lump-sum tax t1 in

In particular, suppose that the consumer has a logarithmic utility function and a lifetime budget constraint where the government taxes a lump-sum tax t1 in the current period and t2 in the second period. Find the optimal consumption in the first and the second periods and compare it with your answer above. Are the consumption levels different in both periods

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