Question two: Consider an economy with a constant population of N=100. Each person is endowed with y = 20 units of consumption good when young and nothing when old.

Question 2- Consider an economy with a constant population of N=100. Each person is endowed with y = 20 units of consumption good when young and nothing when old. a. What is the equations for the feasible set of this economy? Portray the feasible set on a graph. With arbitrarily drawn indifference curves, illustrate the stationary combinations of c1 and c2 that maximizes the utility of future generation. b. Now look at a monetary equilibrium. Write down equations that represent the constraints on rst-and second period consumption for a typical person Combine these constraints into a lifetime budget constraint. c. Suppose the initial old are endowed with a total of M=400 units of at money. What condition represents the clearing of the money market in an arbitrary period t? Use this condition to nd the real return on at money