Question: This was all the info given Consider a representative household that lives for 2 periods (t and t+1) with a lifetime utility function. U =

This was all the info given

Consider a representative household that lives for 2 periods (t and t+1) with a lifetime utility function. U = u(C.) + Bu(Cl+1) (1) The household earns income Y, and Y in each period. The framework is the same as the one we saw in class. (a) (7 points) Solve for the household's optimal Saving function in period t. Show your work clearly. (b) (5 Points) Compare the saving function obtained to the saving function seen in Blanchard, Ch3. Explain in your own words. (c) (3 Points) Under what conditions would we get S,

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