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Suppose an individual lives for two periods and his lifetime utility function is linear in consumption both in first and second periods, U = cm),

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Suppose an individual lives for two periods and his lifetime utility function is linear in consumption both in first and second periods, U = cm\"), + m . The discount factor is and the interest rate is r . The present value of the lifetime wealth is W . a. Suppose (1+ r) . ,8 , nd optimal level plan for today and future. b. Does the Euler equation hold in this case? Why or why not

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