Janet has life time utility given by ln c1 + 0.7 ln c2. Janet currently consumes the
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Janet has life time utility given by ln c1 + 0.7 ln c2. Janet currently consumes the bundle (1000, 600). The level of happiness Janet gets from this bundle is____ utils. If 8 units of c2 is taken away from her, her life time utility will fall roughly by____ utils. At this point, Janet is willing to exchange units of c1 for one unit of c2. If the real interest is 0%, Janet will (save more, less, the same amount.) (Reminder: When c1 increases, you save less.)
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