18. Chris maximizes discounted utility U(co, c1, c2)co + ốc1 + 8?c2 for 80.8.%3DWhich of the following consumption streams will he choose? (Hint: there is noneed to compute the utility function for each option. Just look at the tradeoffsbetween the immediate consumption and the future consumption.)(A) co = c1 = c2 = 10;5, c1 = 15, c25, c1 = 10, c2 = 15;(D) co = 9, c1 = 10, c2 = 12.(B) co10;(C) co%3D19. Emma maximizes quasi-hyperbolic discounted utility U(co, C1, c2) = co+Bốc1 +B8?c2 for B = 0.5 and d = 0.8. Which of the following consumption streamswill she choose?(A) co = C1 = c2 = 10;(B) co5, c1 = 15, c210;(C) co = 5, c1 = 10, c2 = 15;(D) co = 9, c1 = 10, c2 = 12.

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Asked Dec 10, 2019
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18

18. Chris maximizes discounted utility U(co, c1, c2)
co + ốc1 + 8?c2 for 8
0.8.
%3D
Which of the following consumption streams will he choose? (Hint: there is no
need to compute the utility function for each option. Just look at the tradeoffs
between the immediate consumption and the future consumption.)
(A) co = c1 = c2 = 10;
5, c1 = 15, c2
5, c1 = 10, c2 = 15;
(D) co = 9, c1 = 10, c2 = 12.
(B) co
10;
(C) co
%3D
19. Emma maximizes quasi-hyperbolic discounted utility U(co, C1, c2) = co+Bốc1 +
B8?c2 for B = 0.5 and d = 0.8. Which of the following consumption streams
will she choose?
(A) co = C1 = c2 = 10;
(B) co
5, c1 = 15, c2
10;
(C) co = 5, c1 = 10, c2 = 15;
(D) co = 9, c1 = 10, c2 = 12.
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18. Chris maximizes discounted utility U(co, c1, c2) co + ốc1 + 8?c2 for 8 0.8. %3D Which of the following consumption streams will he choose? (Hint: there is no need to compute the utility function for each option. Just look at the tradeoffs between the immediate consumption and the future consumption.) (A) co = c1 = c2 = 10; 5, c1 = 15, c2 5, c1 = 10, c2 = 15; (D) co = 9, c1 = 10, c2 = 12. (B) co 10; (C) co %3D 19. Emma maximizes quasi-hyperbolic discounted utility U(co, C1, c2) = co+Bốc1 + B8?c2 for B = 0.5 and d = 0.8. Which of the following consumption streams will she choose? (A) co = C1 = c2 = 10; (B) co 5, c1 = 15, c2 10; (C) co = 5, c1 = 10, c2 = 15; (D) co = 9, c1 = 10, c2 = 12.

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Hello, since you have posted multiple questions and not specified which question needs to be solved, we will solve the first question for you. If you want any other specific question to be solved then please resubmit only that question or specify the question number.

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18) The correct answer is option C.

Since, Chris maximizes discounted utility U(C0, C1, C2) = C0 + δC1 + δ2 C2, his value of future consumption will be less in present terms. The discounted utility describes the utility of future consumption. Since he would w...

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