Question: Need help with this economics question please! Thank you! Problem 1. Bob lives two periods: today and tomorrow. His preference is represented by the following

Need help with this economics question please! Thank you!

Need help with this economics question please! Thank you! Problem 1. Bob

Problem 1. Bob lives two periods: today and tomorrow. His preference is represented by the following utility function: U(c1,cg) = .5 + awe2 where .21 is today's consumption level and (:2 is tomorrow's consumption level. Suppose Bob's income today is m = $100 and his income tomorrow is ya = $100. Interest rate is denoted by r. 1. (5 points) Write down Bob's utility maximization problem [including the budget set). 2. (5 points) Determine Bob's MRS. 3. (15 points) Determine Bob's optimal consumption bundle (oi, oi) as a flmction of r. 4. (5 points) Draw the inverse demand curve for consumption tomorrow (i.e., c5 on X axis and p2=F1ronYaxisl 5. (10 points) For which values of r does Bob save money today (i.e., of

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