7. Interest rates and saving with exponential period utility. A country's representative individual has the exponential period

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7. Interest rates and saving with exponential period utility. A country's representative individual has the exponential period utility function

$$ u(C) = -\gamma \exp(-C/\gamma) $$

($ \gamma > 0 $) and maximizes $ U_1 = u(C_1) + \beta u(C_2) $ subject to

$$ C_1 + R C_2 = Y_1 + R Y_2 = W_1 $$

[where $ R = 1/(1 + r) $].

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Foundations Of International Macroeconomics

ISBN: 9780865716513

1st Edition

Authors: Rogoff, K.

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Question Posted: Nov 13, 2024 03:00 AM

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7. Interest rates and saving with exponential period utility. A country's representative individual has the exponential period

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Foundations Of International Macroeconomics

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