Hello,

We are given this utility

function u(C1,C2)= log(C1)+log(C2), where C1 is present consumption and C2 is future consumption and>0

The question I have difficulty answering is:

"If C1 = C2 and = 0.5, will the consumer then be tempted by barter, where she must give up more future consumption, C2, than she receives in present consumption, C1? Include |MRS| in the reasoning for your answer."