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The world lasts T > 2 periods. A consumer has income w t in any period t. The real interest rate is r 0, and
The world lasts T > 2 periods. A consumer has income wtin any period t. The real interest rate is r 0, and the consumer can borrow and lend as much as he/she wants at this rate. The consumer consumes ctin each period and has utility function U(c).
a. Write down the consumer's budget constraint.
b. Write down the consumer's utility maximization problem.
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