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In particular, suppose that the consumer has a logarithmic utility function and a lifetime budget constraint where the government taxes a lump-sum tax t1 in
In particular, suppose that the consumer has a logarithmic utility function and a lifetime budget constraint where the government taxes a lump-sum tax t1 in the current period and t2 in the second period. Find the optimal consumption in the first and the second periods and compare it with your answer above. Are the consumption levels different in both periods
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Business Ethics Case Studies And Selected Readings
Authors: Marianne M. Jennings
9th Edition
0357453867, 9780357453865
