第一题:Tony’s utility function is , where is his consumption in period 1 and is his consumption in period 2. In period 2, his income is twice as large as his income in period 1. At what interest rate will he choose to consume the same amount in period 2 as in period 1?
第二题:Will Wisp will live for exactly two periods. His utility function is, where is consumption in period 1 and is consumption in period 2. He will have no income in period 2. His income in period 1 is $80,000. If the interest rate rises from 10 to 12%, what will his consumption changes with it?