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These problems may require calculations and graphs, so | suggest you do the work on another piece of paper and then input your answers into
These problems may require calculations and graphs, so | suggest you do the work on another piece of paper and then input your answers into Canvas. Suppose you are deciding how much of a fancy bottle of scotch to drink today, and how much to save for next year. If you're an exponential discounter with 6 = .5, what proportion of the scotch will you drink this year? Assume each time period is 1 year in this question. Assume that your utility function is U(x)=In(x). Round your answer to the second decimal place. And enter your answers as follows, if it was 10%, then 0.10, if was 58.7%, then 0.59 (because of rounding)
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