1.1 Suppose utility equals In(ci,) + #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 +8 b. Derive expressions for the lifetime consumption pattern cj, and (2,. c. What effect does an increase in / have on real money balances and the lifetime consumption pattern? Give an intuitive interpretation of the parameter B