Imagine that the preferences of consumers living in an OLG economy are represented with U(cit, C2t+1) = log(cit) + log(C2t+1). Assume that young individuals earn w = 24, and that the interest rate is equal to 0, and that population is constant. a) What is the amount that should be saved? b) Now imagine that consumers are myopic and that they do not attach the sufficient weight to the future. Specifically, assume that they behave as if their preferences were represented with U(C14,C2+1) = log(@v) + log(C2+1). What is the amount saved in this case? c) Now, imagine that the government chooses to intervene. It taxes workers T = 8 and finances the benefits of the old using the tax proceed. What is the amount saved in this case? d) Can you find the value of T that would induce the optimal amount saved on the part of young individuals? Imagine that the preferences of consumers living in an OLG economy are represented with U(cit, C2t+1) = log(cit) + log(C2t+1). Assume that young individuals earn w = 24, and that the interest rate is equal to 0, and that population is constant. a) What is the amount that should be saved? b) Now imagine that consumers are myopic and that they do not attach the sufficient weight to the future. Specifically, assume that they behave as if their preferences were represented with U(C14,C2+1) = log(@v) + log(C2+1). What is the amount saved in this case? c) Now, imagine that the government chooses to intervene. It taxes workers T = 8 and finances the benefits of the old using the tax proceed. What is the amount saved in this case? d) Can you find the value of T that would induce the optimal amount saved on the part of young individuals