ow suppose there exists a social planner that individuals entrust all their endowment at time 0. The social planner will pay individuals who want to withdraw from the bank early C1* and those who wait till the second period C2*. Suppose the social planner's problem is: Maximize: U = (1/2) u(C1) (1/2) u(C2) subject to: (1/2) C1 (1/8) C2 = 1, Where u(C1) = -1 / C1, and u(C2) = -1 / C2 a) What is the optimal level of period 1 consumption, C1*? b) What is the optimal level of period 2 consumption, C2*