d. Consider the subsidy introduced in (c). How much utility V will each saver attain under this

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d. Consider the subsidy introduced in (c). How much utility V will each saver attain under this subsidy?

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10among other functions, you should have derived uncompensated and compensated savings function as ks 1r, l2 5 11 2 a2/ and k c

s 5 c1 2 aa 1 1 r 1 1 r b

112a2 d /. (19.36)

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