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Unformatted text preview: promised a day later. c. At any period in which he does not have an apple, he prefers to get one apple immediately in exchange for two apples tomorrow. d. Cares only about his consumption in the Frst 120 years of his life. Show that if (poor) Adam is offered a stream of 2 apples starting in period 19 for the rest of his life (assuming he does not expect to live more than 120 years), he would be willing to exchange that offer for one apple given right away....
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This note was uploaded on 12/29/2011 for the course ECO 443 taught by Professor Aswa during the Fall '10 term at SUNY Stony Brook.
- Fall '10