Question
the ultility function is U(c1,c2)=min(c1,2c2), the incomes are y1 and y2, the interest rate is 20% and the inflation is -10%(the price are actually going
the ultility function is U(c1,c2)=min(c1,2c2), the incomes are y1 and y2, the interest rate is 20% and the inflation is -10%(the price are actually going down) what is the formula for optimal consumption in period 2? Write out the budget constraint an 1-2 key steps
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International Economics
Authors: Robert C. Feenstra, Alan M. Taylor
3rd edition
978-1429278515, 142927851X, 978-1319029517, 1319029515, 978-1429278447
