WhereC1is her consumption in the first period, andC2is her consumption in the second period.

a) Maryam starts with a wealth of $100,000, earns no additional income and faces a zero interest rate. How much does she consume in each period?

b) Now assume that the interest rate is equal to 10% (r = 0.10). How much does she consume in each period? Does Maryam consume more in the first period relative to the second period?

was the following exponential utility function: U = (1 -ec1) + (1 -eC2) Where C1 is her consumption in the first period, and C2 is her consumption in the second period. a) Maryam starts with a wealth of $100,000, earns no additional income and faces a zero interest rate. How much does she consume in each period? b) Now assume that the interest rate is equal to 10% (r = 0.10). How much does she consume in each period? Does Maryam consume more in the first period relative to the second period