Question: Problem 1 Consumption Answer the following questions: a) Suppose that an individual receives limited income from side jobs until his/her 205, high income from a

Problem 1 Consumption Answer the following questions: a) Suppose that an

individual receives limited income from side jobs until his/her 205, high income

Problem 1 Consumption Answer the following questions: a) Suppose that an individual receives limited income from side jobs until his/her 205, high income from a Wall Streetjob in his/her 305/405/505, and limited retirement income after his/her 505. What is the optimal consumption path for the individual over his/her lifetime? b) Can you explain why the previous path is optimal? c) Are there any factors that can prevent him/her to follow the optimal path? d) Suppose that, at some point, the value of his/her stock market investments doubles. How does this affect the optimal consumption plan described above

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