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Crusoe will live this period and the next period as the lone inhabitant ot nis island. His only income is a crop of 100
Crusoe will live this period and the next period as the lone inhabitant ot nis island. His only income is a crop of 100 coconuts that ne harvests at the beginning ot each period. Coconuts not consumed in the current period spoil the rate ot 10% per period. (Enter your answers as whole numbers. Enter "O" as required.) a. Draw Crusoe's intertemporal budget constraint What will be his consumption in each period it ne regards future consumption as perfect, one-for-one substitute tor current consumption? Current Consumption: Future Consumption: 5. What will he consume each period Ithe regards 0.8 units ot future consumption as being worth 1 unit of current consumption? Current Consumption: Future Consumption:
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