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A Erilctionless Economy Consider an economy where a representative consumer receives Y in income each period and maxnmizes her expected discounted utility El Ztsntct) (1)

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A Erilctionless Economy Consider an economy where a representative consumer receives Y in income each period and maxnmizes her expected discounted utility El Ztsntct) (1) i=0 subject to the following budget constraint 3.0.: + 3.5 = PEY + [1 +'1)Bi,1- (2) The price of consumption goods is denoted as P5, B; represents one-period nominal bonds, and it is the nominal interest rate. (a) Solve for the first order conditions of the consumer's problem. Write out the consumer's Euler equation. Note that since this is an endowment economy 0: : CH1 : Y in all periods and this is known with certainty. (4 points)

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