Consider a simple two-period model of intertemporal choice. Suppose that a person receives income $35,000 in period 1 and additional income $33,990 in period 2. The market interest rate at which the person can both borrow and save is 3%. Finally, the person’s intertemporal preferences are

Hello your question ls not complete here is the missing equation and  question

U ( c₁c₂ ) = ( c₁ ) + α ( c₂ )

Derive the budget constraint that the person faces

ANSWER : c1 +  = 35000 +

Explanation:

period 1 income ( y1 ) = $35000

period 2 income ( y2 ) = $33990

interest rate = 3% = 0.03

utility ( c1, c2 ) = ( c1 ) + α ( c2 )

Deriving The budget constraint that the person faces

saving ( s ) = y1 - c1

c2 = ( 1 + r ) ( y1 - c1 ) + y2

 =  y1 - c1  +

present value of consumption = present value of income

c1 +  = 35000 +

This is the derived equation

whats the

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.