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Intermediate Macroeconomics: Consumption

Intermediate Macroeconomics: Consumption

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happiness or overall satisfaction. We assume that overall lifetime utility, U, is equal to a weighted sum of utility from consumption in the present and in the future periods: U= u(C t) + u(C t+1); 0 <1 is what we call the discount factor, and it is constrained to lie within 0 and 1. It is a measure of

  Satisfaction, Consumption

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