1.1 Suppose utility equals In(c1,r) + In(c2, +1) where In(c) represents the natural loga- rithm of c, whose derivative equals 1/c. The parameter / is a positive number. a. Prove that real money balances are By 1 + B b. Derive expressions for the lifetime consumption pattern of , and C2,. c. What effect does an increase in B have on real money balances and the lifetime consumption pattern? Give an intuitive interpretation of the parameter B