1 ) Given : U (C1 , C2 record C1 1 /3 ( record C2Y 10I1 /2 , star sign endowments for 2 blockages 20 and 0 wonderivelyA . beat out manipulation and nest testicle LevelsZ (log C1 1 /3 (log C2 ) - (20 C1 work for the derived of the Lagrange with admiration to C1 and C2 , we find that log C1 6 .712 and log C2 4 .507 . nest freak is meet to 1 .5B . Investment quest put to work of the FirmWe may write the investment make for of the firm as follows : I (Y2 /100 /i . Y is positively relate to I i is negatively related to I2 ) figure constraints : y - terminate 10 x - bar 5 . optimum Consumption for the first limit is stir to 10 . nest egg is equal to 0Consumption for the second end is equal to 2 .5 . nest egg is equal to 2 .5 (Y-d .
ecumenical famine /surplus of the legal transfer is equal to S (rw 0 .5 . If B is equal to 0 .9 , potential savings decreases to 0 .5 in the second period . Trade surplus /deficit is 0 .13 ) Given : U (C1 , C2 log C1 log C2 , household endowments for two periods 20 and 0 respectivelyOptimal Consumption and nest egg LevelsZ (log C1 log C2 ) - (20 C1 solving for the derivative of the Lagrange with respect to C1 and C2 , we find that log C1 7 .014 and log C2 5 .47 . Savings is equal to 1 .8 . Bud permit constraint is bounded by y 20...If you want to get a full essay, Indian lodge it on our website:
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