Economics

1 ) given over : U (C1 , C2 poundarithm C1 1 /3 (log C2Y 10I1 /2 , household endowments for dickens consummations 20 and 0 remarkivelyA . best Consumption and nest egg LevelsZ (log C1 1 /3 (log C2 ) - (20 C1 solving for the derived economic consumption of the Lagrange with respect to C1 and C2 , we find that log C1 6 .712 and log C2 4 .507 . nest egg is adequate to 1 .5B . Investment admit purpose of the FirmWe may drop a line the investment function of the theatre as follows : I (Y2 / degree centigrade /i . Y is positively colligate to I i is negatively related to I2 ) reckon constraints : y - intercept 10 x - intercept 5 . optimum Consumption for the early period is passable to 10 . savings is equal to 0Consumption for the fleck period is equal to 2 .5 . savings is equal to 2 .5 (Y-d .

General deficit / otiose of the sparing is equal to S (rw 0 .5 . If B is equal to 0 .9 , potential savings decreases to 0 .5 in the endorsement period . Trade unnecessary /deficit is 0 .13 ) Given : U (C1 , C2 log C1 log C2 , household endowments for two periods 20 and 0 respectivelyOptimal Consumption and Savings LevelsZ (log C1 log C2 ) - (20 C1 solving for the differential gear 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 . Budget constraint is bounded by y 20...If you expect to get a lavish essay, install it on our website: Orderessay

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