Euler equations of standard utility functions Consider the following utility function: u(C) = C^1/1 ,

> 0 Assume now that the consumer receives exogenous labour income of Yt in each of the infinite periods for which she is alive. Assume that the consumer can save, in order to smooth consumption inter- temporally. Assume assets follow a law of motion as follows: At+1 = (1 + r)(At Ct + Yt), where r is the interest rate. Q. Derive the intertemporal budget constraint, by substituting the law of motion for At+1 forwards in time.