Question
Write down the the household's problem and solve for new optimal c , c and s when r =0 and the utility function given by
Write down the the household's problem and solve for new optimal c , c and s when r =0 and the utility function given by U (c , c )=lnc +lnc where =1 assuming y T =y T as in part (3). Here, assume that households can borrow freely.
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
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