Question: just getting stuck on lagrange and overall silly math mistakes. please help! 1. (15 points) Consider a two-period intertemporal choice model. Zhenning has utility over

just getting stuck on lagrange and overall silly math mistakes. please help!

1. (15 points) Consider a two-period intertemporal choice model. Zhenning has utility over consumption in period 1 (cD and consumption in period 2 (02) given by: U (cl,c2) = In(CI) + In(C2) 1.03 where the captures his subjective discount factor, 3. He can borrow and lend at the real interest rate r. (a) Suppose that Zhenning will receive equal income in both periods of = Y2 = 1. Also suppose that the real interest rate r = 0.03. Solve for Zhenning's optimal consumption plan. Interpret this result, briefly.

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