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2. (60 points) Use the Bellman equation methodology to derive the Euler equation of the following dynamic model: 0.99 In Ct t=0 1/3 subject

2. (60 points) Use the Bellman equation methodology to derive the Euler equation of the following dynamic model: 0.99 In Ct t=0 1/3 subject to Ct + Kt+1 = 5K/. Show your work clearly. max Ct, kt+1

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