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(b) Use the method of two-stage budgeting to solve the optimization problem for individual households. (c) Derive the aggregate consumption rule, the aggregate consumption Euler

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(b) Use the method of two-stage budgeting to solve the optimization problem for individual households. (c) Derive the aggregate consumption rule, the aggregate consumption Euler equa- tion, and the differential equations for aggregate human and financial wealth for the model. (b) Use the method of two-stage budgeting to solve the optimization problem for individual households. (c) Derive the aggregate consumption rule, the aggregate consumption Euler equa- tion, and the differential equations for aggregate human and financial wealth for the model

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