Question: Ronnie has the utility function (1, 2) = 1^2^1 where (0,1) and 1 and 2 are his consumption in periods 1 and 2, respectively. He

Ronnie has the utility function (1, 2) = 1^2^1 where (0,1) and 1 and 2 are his consumption in periods 1 and 2, respectively. He earns $200 in period 1 and $280 in period 2. He can borrow or save at an interest rate of 10% and the price of the consumption good is $1 in each period. a. Write Ronnie's present-value and future-value budget constraints. b. If Ronnie does not trust banks and decides to keep his savings in cash (i.e. they earn zero interest) and he does not have access to other sources of credi

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