- *Question 4 (up to 20 points extra credit)*: [Lecture 8) Suppose a consumer has to make intertemporal consumption choices Ci, ca for single consumption good over two periods with a utility of consumption u(c) = ln(c) in each period and a personal discount rate of B = .95 so that the present utility value of consumption is equal ulci) + Bu(c2). Assume the consumer has perfect foresight so it is known that the price of the consumption good in each period will be pi 18 and p2 = 19 dollars respectively and the endowment of the consumption good in each period will be mi 11 and m2 = 9 units respectively. There is a financial asset b available representing borrowing (6 > 0) or lending (b 0) or lending (b