xx = 50

3) [25 marks] lntertemporal Model. Assume that a small open economy runs for 2 periods and has production, investment, and a representative consumer with: 0 Lifetime utility function: U; = 1n(C1) + [31n(Cz) 0 Production function: Yt = 3'75 where the initial capital stock is K1 = 500 0 Capital Stock in Period 2: K2 = K1 +11, where 11 is period-1 investment 0 Access to international credit markets at an interest rate r = 0.1XX, where XX are the last two digits of your student number. For example, if the last two digits of your student number are "49\