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2. 5 Suppose that Cookie Monster's prefer- ences are represented by u(co, c,) = In(c) + = In(c,), and his income is (yo, #1) =

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2. 5 Suppose that Cookie Monster's prefer- ences are represented by u(co, c,) = In(c) + = In(c,), and his income is (yo, #1) = (16, 20), of which the government takes away (to, t,) = (6, 0). Due to his reckless eating habit, no one wants to lend him. As a result, in addition to his usual in- tertemporal budget constraint, he also faces credit constraint s. 2 0. The interest rate is given by = 1. Write his utility maximization

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