Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

do all parts 1,2,3for part 2 please do in R

1 answer below »
do all parts 1,2,3for part 2 please do in R
screen-shot-2022-03-22-at-124940-am-qzrfmd0y.png
Answered 4 days After Mar 22, 2022

Solution

Komalavalli answered on Mar 23 2022
116 Votes
Q1)
T = 3
U (C3) = C31- Ï’/(1- Ï’)
St C3+a4=0
yt+(1+rt) at =0
y solving this , using first order condition we get
C3= - a4
C2= - a3
C1= - a2
C0= - a1
Above consumption indicates optimal level of consumption.
Q3)
T = ∞
∂p/∂yt+∂p/∂yt+1 =0
∂2p/∂yt2+∂p/∂yt+1 =-∂p/∂yt
∂p/∂yt+∂2p/∂yt+12...
SOLUTION.PDF
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
Attach File