1. Consider a two-period economy. An agent's preferences for consumption at time t are represented by a CRRA utility function with coefficient of relative risk aversion equal to 1 . The consumer maximizes u(C1)+E1u(C2), with subjective discount factor =0.9. The agent has an endowment e1=10 at time 1 and a stochastic endowment e2 at time 2 , with E1e2=10. a) Suppose in the economy there is a risk free asset with return R=1/0.9= 1.11. Does the agent save a strictly positive amount at time 1 ? b) Does the result you obtained in part " a " hold for any risk averse preferences