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Caitlin is a utility maximizing consumer with u(f1, f2) = f11/2f21/2 so MRS = f2/f1. She earns m1 = 80, m2 = 50 and can
Caitlin is a utility maximizing consumer with u(f1, f2) = f11/2f21/2 so MRS = f2/f1. She earns m1 = 80, m2 = 50 and can save at an interest rate of 25 percent. How much will Caitlin save? Provide an Indifference Curve and Budget Line Diagram to illustrate this calculation with Graph please
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