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In the following attachment. Answer the questions. Provide step by step solution. Consider the following lifetime optimal consumption-saving problem . max tracti] t:0 Subject to

In the following attachment. Answer the questions. Provide step by step solution.

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Consider the following lifetime optimal consumption-saving problem . max tracti] t:0 Subject to atti = R ( 9+ - CD ) , t= 0 , ., T a = a ( 0 ) , at+ 1zo, where B is the consumer's rate of time preference ( B = 1) and R = It is the gross interest rate. Required : ( a) use the flove budget constraints and the terminal condition to derive the intertemporal ( lifetime) budget constraint . ( 6.) Derive the consumption Euler equation that links consumption in two consecutive periods, t and this and then combine it with the intertemporal budget constraint to find optional consumption (ct ) as a frenchion of the given initial level of asset holdings ( a. ), model parameters ( R, B, T ), and time t (c). Assume that BR = 1: find optimal consumption (CA) and asset holdings ( at )

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