In the two-period consumption model, suppose
Within the two-period consumption mannequin, suppose that Y1 = 100 and Y2 = 210. There is no such thing as a preliminary wealth. If the utility perform of the person is U = log(C1) + .9 log(C2) and the rate of interest is 5%, what are C1 and C2? How would your reply change if U = log(C1) + log(C2)? Clarify in phrases why the change would occur