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please solve Question # 01 Consider an individual who lives for two periods and whose utility is given by E (U) = E [VC,VC2] Let

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Question # 01 Consider an individual who lives for two periods and whose utility is given by E (U) = E [VC,VC2] Let P1 and P2 denote the prices of consumption in the two periods, and let W denote the value of the individual's lifetime income. a) Derive the individual's utility-maximizing choices of Ci and Czgiven Py P2 and W? b) Verify the random walk hypothesis. (25 Points)

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