Question: Please try your best! A rational, selfish consumer lives for two periods. Her subjective discount rate and the real interest rate are both 5% per

Please try your best!

A rational, selfish consumer lives for two periods. Her subjective discount rate and the real interest rate are both 5% per period.

  1. If her first period income increases by 1000, by how much will her first period consumption rise?
  2. If her second period income increases by 1000, by how much will her first period consumption rise?

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