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October 14, 2020
4) A box contains colored circles and triangles. 60% of all the figures are red, while 40% are blue. Of the red figures, 1/3 are triangles, and of…
October 14, 2020
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Hello! I was just curious if you could explain in depth the inter-temporal budget constraint in an infinite horizon.

Hello! I was just curious if you could explain in depth the inter-temporal budget constraint in an infinite horizon. What are the important factors to focus on when working on a problem dealing with an infinite inter-temporal budget constraint. What are the steps to finding consumption/savings within each period, as well as interest rate, when the consumer wants to maximize the discounted flow of utility?

 

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