The neoclassical consumption model, a retirement perspective: consider the ial case solved in the text where b 1 and utility takes the log form. suppose the real interest rate is 5 percent. let's give this consumer a financial profile that might look like that of a middle-aged college professor contem- plating retirement: initial assets are foda,-$50,000, and the path for labor income is yroday $100,000 and y (a) what is the individual's human wealth? total wealth? (b) according to the neoclassical model, how much does the college professor yfuture = $10,000 consume today and in the future? how much does the college professor save todav? (c) if current labor income rises by $20,000, by how much will saving change? (d) by how much does consumption today rise if future labor income rises (e) if the interest rate rises to 10 percent, by how much do total wealth an (f) would it matter if the professor could not borrow? by $10,000? today's consumption change? by how much does saving change? why are these effects so much smaller than in exercise 1?