1. Your instantaneous utility function for each period is ln (c_t). Suppose there are 3 periods, so you must choose (c₁, c₂, c₃) given incomes Y₁, Y₂, Y₃ over the 3 periods, and market interest rate r and the subjective discount factor.

a.What is your optimal consumption plan over the 3 periods?

b. Assume r=0.10, =0.9, and present value of income W=1000. Solve for your optimal consumption plan over the 3 periods?