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EXERCISE 3 Martina has the utility function u(c1, c2) = 61/2 + c, where ci is the consumption in period '12 = 1, 2. Her

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EXERCISE 3 Martina has the utility function u(c1, c2) = 61/2 + c, where ci is the consumption in period '12 = 1, 2. Her income in period 1 is $100, and her income in period 2 will be $125. The price of the good is $1 in period 1, and 75 cents in period 2. She can borrow 0r lend at an interest rate of 10%. (1) Write an equation that describes Martina's budget constraint. (2) What is Martina's optimal consumption stream

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