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Having trouble with macroeconomics thanks Consumption Saving (20 points). A widely used utility function in the economics literature is the constant rate of risk aversion

Having trouble with macroeconomics thanks

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Consumption Saving (20 points). A widely used utility function in the economics literature is the constant rate of risk aversion utility function, of which log utility is a special case. It is given by 017 17 (a) What is the marginal utility of consumption? 11(0) = (b) Consider a twoperiod problem, with endowment Y1 and Yg, but with income tax rate of t in both periods, write down the intertemporal budget constraint. (0) What is the Consumption Euler equation? (d) Show that if 7 = 1, the Euler equation is the same as if we used log utility

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