Problem 2: Indifference Across Assets (20 Points) Suppose the representative consumer can invest in three assets: nominal bonds, stocks, and physical capital. The consumer supplies one unit of labor inelastically in each period, lives in a world of perfect foresight, and wants to maximize the intertemporal utility function: Bs_tu (Cs) , where "s is consumption in periods and / is a discount factor strictly between and 1. The budget constraint in period is