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# A consumer lives for three periods, 0, 1, and 2. She derives utility from consumption in periods 1 and 2 (we are ignoring her consumption in period...

Can I get assistance for the following questions (a) (b) and (c)

2. A consumer lives for three periods, 0, 1, and 2. She derives utility from
consumption in periods 1 and 2 (we are ignoring her consumption in
period 0 for the purposes of this problem). Her instantaneous utility from
consuming an amount 01 in period 1 is 01, and her instantaneous utility
from consuming C2 in period 2 is 02. The consumer is a naive hyperbolic
discounter with B =1l2 and 5 = 1. The consumer starts off with a wealth of \$60 in period 0. She can keep
her wealth in a checking account, in which case it earns no interest, and
she arrives in period 1 with \$60 in cash. Alternatively, she can put \$10,
\$20, or \$30 in a retirement account that earns 10 percent interest until
period 2. (That is, if she puts \$10 into the account in period 0, she gets
back \$11 in period 2, and so on.) If she puts money in her retirement
account in period 0, that money cannot be withdrawn in period 1. In addition to having access to the retirement account, the consumer can
borrow \$10 on her credit card in period 1. If she decides to borrow the
\$10, she has to pay back \$15 in period 2. (a) How much money does the consumer put in her retirement account
in period 0? Does she plan to use her credit card in period 1? Show
your work. (b) Does the consumer borrow on her credit card in period 1? Show your
work. (c) What is strange in the consumer’s behavior?

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