3) Consider an individual who will live for 3 periods with utility function U(X1, X2, x3)...

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3) Consider an individual who will live for 3 periods with utility function U(X1, X2, x3) and periodic incomes 11,12,13. Assu

Answer 1

Answer #1

Answer-3 Lets first form Intertemporal Budget constraint. - S2 x = I, - s , where s = perioda 1 saring => s, = I, -X, 2. = I₂

Answer 2

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