, we have 2(1)tttttMciPi(be careful with the algebra here –notice the squared terms in the solution). Thus, the function function is 22(1),tttttcic ii, which is increasing in consumption and decreasing in the nominal interest rate, again as expected. c. 1,ttttttMMu ccPP, with 11ttcttMucPand (1)ttmttMucP. Solution: The consumption-money optimality condition is 11(/)1(/)1tmttttcttttucMPiucMPi. After combining exponents, we can write this as 11titttPicMi. Solving for /tMP, we have (1)tttttMciPi. Thus, the function is (1)1,ttttcic ii.