2 Savings and Discounting W'e dismissed in class the fact that when people choose to save, they are mak- ing a choice between consuming something today, and consuming something tomorrow. If it is the case that an individual's \"utility\" is given by the func- tion Info), then this intertemporal choice involves maximizing expected util- ity: In (away) + fmlqmmrmw) subject to the fact that you can either get a return on income or take out a loan, so your \"lifetime\" income is equal to a: : ymday + yromormw- In this problem ,0 is called the \"discount rate\