Consider the optimal saving-consumption problem under certainty, as presented at the beginning of Sect. 3.4. Show that
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Consider the optimal saving-consumption problem under certainty, as presented at the beginning of Sect. 3.4. Show that the optimal saving \(s^{*}\) is increasing with respect to the risk free rate \(r_{f}\) if the coefficient of relative risk aversion is less than one.
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Financial Markets Theory Equilibrium Efficiency And Information
ISBN: 9781447174042
2nd Edition
Authors: Emilio Barucci, Claudio Fontana
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