Two-period Model Consider an economy similar to the one described in class. However, in this economy there are two types of consumers denoted by i E {1,2}. Preferences for current and future consumption are given by: U; = ln(c) + B; In(c) where B; is the discount factor of future utility. If B; = 1, consumer i cares equally about current and future utility. On the other hand, if B: