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Consider a two-period endowment economy with a single representative agent. That agent's utility function is: U = ln(c t ) + (1/2)ln(c t+1 ) In
Consider a two-period endowment economy with a single representative agent. That agent's utility function is:
U = ln(ct) + (1/2)ln(ct+1)
In this endowment economy, output is 100 in periodt and 150 in periodt+1. What is the equilibrium interest rate (r) in this economy?
Write your answer as a percentage, but omit the percent sign.
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