Question: Please help me answer x (5 points) Consider the two-period model as in the lecture notes. Objective of a consumer is to maximize her life

Please help me answer x

(5 points) Consider the two-period model as in the lecture notes. Objective of a consumer is to maximize her life time utility. The life-time utility function is given by U(ce) - Inc | Bine, where U (Gic ) is the life-time utility, c is the first-period consumption and ch is the second period consumption. The consumer receives y units of consumption good as income in the first period and y in the second period. ITer life-time budget constraint is where + denotes the real interest rate in the economy a) Solve the consumer's optimization problem to get equilibrium solutions to c , s , and " Has functions of y, y and ragggobag 1305 mod b) Prove c'changes less than proportionately with a change in first period incomedy Why is so
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