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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,
The world lasts T > 2 periods. A consumer has income wt in 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 ct in 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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