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In the two-period model of consumption and saving, assume that individuals can borrow/lend at an interest rate r > 0. Suppose that there are two

In the two-period model of consumption and saving, assume that individuals can borrow/lend at an interest rate r > 0. Suppose that there are two consumers, i = {1,2}, with utility functions given by

U(ci, c'i) = ln(ci) + ln(c'i).

Solve for consumer's optimization problem.

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