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Consider a household living for two periods. The intertemporal budget constraint is given by 5'2 _ 3'2 C1+1+r_y1+1+r' where c is consumption, y is income
Consider a household living for two periods. The intertemporal budget constraint is given by 5'2 _ 3'2 C1+1+r_y1+1+r' where c is consumption, y is income and r is the interest rate. The household's preferences are characterised by the utility function \"(51:02) = \"(01) + 311072) Where u(ct) is the period utility function and B
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