=+We calculated that consumption next summer is unchanged as the interest rate rises when tastes can be

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=+We calculated that consumption next summer is unchanged as the interest rate rises when tastes can be represented by the Cobb–Douglas utility function we used. This is because this function assumes an elasticity of substitution of 1.

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Microeconomics An Intuitive Approach With Calculus

ISBN: 9781337335652,9781337027632

2nd Edition

Authors: Thomas Nechyba

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Question Posted: Nov 04, 2024 02:00 AM

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=+How would this result change if the elasticity of substitution is larger or smaller than 1?
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=+We calculated that consumption next summer is unchanged as the interest rate rises when tastes can be

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Microeconomics An Intuitive Approach With Calculus

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