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Please help me find the solution to the following question. 3. [6] Consider a twoconsumer, twoperiod economy. Consumers can buy and sell claims on consumption

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Please help me find the solution to the following question.

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3. [6] Consider a twoconsumer, twoperiod economy. Consumers can buy and sell claims on consumption 33%- in period 2' : 1,2 at unit price pi. Each consumer owns 1 unit of the consumption good in both periods. The utility of consumer A from consumption path (rf'gc) is In will +lnz1:1, and the utility of consumer B from consumption path (3:33:23) is (l ,8) ln $113 + ln 3323, Where 0 S ,8 S 1. Notice that consumer A does not discount future consumption, Whereas consumer B can either have a preference for current or future consumption (depending on Whether 3 1/2 or 2 1/2, respectively). (a) [2] Derive a competitive equilibrium for this economy. (b) [2] Illustrate the equilibrium from (a) in an Edgeworth box for the case in which 3 = 1. (c) [2] As a function of , What is the real interest rate in this economy? Show that the real interest rate in this economy can be negative. Interpret your

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