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I always thought my good friend Alex was quite original given his choices. He then once told me his utility function was U(c1,c2) = min
I always thought my good friend Alex was quite original given his choices. He then once told me his utility function was U(c1,c2) = min {c1,c2} where c1 and c2 are his consumption in period 1 and 2 respectively. I know in the first period he earns $168 thousand and $105 thousand in period 2. Alex can borrow or lend at an interest rate of 10%. Inflation is negligible. What will he do
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