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................Please give detailed answer Consider the following two period utility function: 2. a) 1- 1-y C 2 + 1-y 1 - y where c, is

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................Please give detailed answer

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Consider the following two period utility function: 2. a) 1- 1-y C 2 + 1-y 1 - y where c, is the consumption date i (i=1,2). Why is the parameter > called a measure of risk aversion? Show that the inverse of y is the elasticity of intertemporal substitution in consumption. Carefully interpret your results

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