Levinn's utility function is expressed as the following: U= C1 C2 0.3 where C1 is his first
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Levinn's utility function is expressed as the following: U= C1 C2 0.3 where C1 is his first period consumption and C2 is his second period consumption. His income in the first period is $2500 and interest rate is at 10%. If at equilibrium, Levinn is neither a borrower nor a lender, then what is his expected income in the second period? Show the graph if possible
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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