Consider the following two-period problem for the representative consumer. Y 12 T 2 Y2 50 T-6 r-0.10 C= consumption in the first period C2 = consumption in the second period S- saving in the first period U(C, C2) = In(C1) + In(C2) What is the optimal saving, S*, that maximizes the representative consumer's lifetime utility? A. 25 B. 15 O6: 15

Consider the following two-period problem for the representative consumer. Y 12 T 2 Y2 50 T-6 r-0.10 C= consumption in the first period C2 = consumption in the second period S- saving in the first period U(C, C2) = In(C1) + In(C2) What is the optimal saving, S*, that maximizes the representative consumer's lifetime utility? A. 25 B. 15 O6: 15

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.2P

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