Question: ................ Question # 01 Consider an individual who lives for two periods and whose utility is given by E (U) = EWC,VCz] Let P1 and

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................ Question # 01 Consider an individual who lives for two periods

Question # 01 Consider an individual who lives for two periods and whose utility is given by E (U) = EWC,VCz] Let P1 and P2 denote the prices of consumption in the two periods, and let W denote the value of the individual's lifetime income. Derive the individual's utility-maximizing choices of C1 and C2 given P1, P2 and W? b) Verify the random walk hypothesis. O

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