Question
Consider the following two-period model of consumption and saving: Utility =ln(C1)+ln(C2) C1+C2/(1+r) = Y1+Y2/(1+r) where Y1 = 4,Y2 = 3 and r = 0.16. Find
Consider the following two-period model of consumption and saving:
Utility =ln(C1)+ln(C2)
C1+C2/(1+r) = Y1+Y2/(1+r)
where Y1 = 4,Y2 = 3 and r = 0.16.
Find a numerical solution for saving, S = Y1 - C1.
(State your answer to 2decimal places.)
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Principles of Microeconomics
Authors: N. Gregory Mankiw
8th edition
1305971493, 978-1305971493
