# uh (and!) = lnc;l + hlnc;I u; (01,02) = lnc; + ,8; Inc; Some consumers are very patient and have a high ,8,” others are impatient and have a low 6;…

Consider an economy with two types of consumers labeled h and l. Consumers have preferences for current and future consumption given by:

uh (and!) = lnc;l + ﬁhlnc;I u; (01,02) = lnc; + ,8; Inc; Some consumers are very patient and have a high ,8,“ others are impatient and have a low 6;(ﬁt < 3h). Note that 3 is the weight in the future consumption, or the discount rate. Consumersare equal in their income and there are no taxes (that is, t = t = O). The government does not have to ﬁnance any spending.There are N consumers of each type in this economy. That is, in total there are 2N consumers, N of them are type it and N are type l.I recommend that you make a change of variable to solve this problem: instead of working with the net interest rate (7“), work with the gross interest rate R = 1 + ‘r.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.