# Answer to Question #40981 in Biochemistry for Yuki

Question #40981

5) Suppose that δ = 0. Using the equations in (e), show that the consumer makes all planned durable purchases in one lump sum in the first period, and absent shocks, makes no further purchases thereafter.

6)Discuss the implication of (f) on the property of durable stock and durable expenditure in a linear-quadratic variant of this same simple case where income is stochastic. (Hint: You may want to look at the exercise 8.12 in Romer (4th edition).)

6)Discuss the implication of (f) on the property of durable stock and durable expenditure in a linear-quadratic variant of this same simple case where income is stochastic. (Hint: You may want to look at the exercise 8.12 in Romer (4th edition).)

Expert's answer

Dear visitor

Unfortunately, the statement of your question is a bit confusing.

Please, give us the details so we could help you

Unfortunately, the statement of your question is a bit confusing.

Please, give us the details so we could help you

Need a fast expert's response?

Submit orderand get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

## Comments

## Leave a comment