Describe how much the consumer plans to spend in each year

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Suppose there are two goods and consumption in year one is C1 and consumption in year two is C2. Endowments in the two years are given as m1 = 100 and m2 = 100. If the interest rate is r = 10% and the utility function is , determine how much the consumer plans to spend in each year and how much she borrows or lends in the first year.

Reference no: EM1363959

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