7. What is “Polonius’ point”? Set up the intertemporal utility maximization problem for an individual over two periods (i.e., t = 1, 2). Find the formula for consumption in the first period as a function of the interest rate, the discount rate, and income over the two periods.
8. What is l’Hopital’s Rule? Use the rule to find the following limit: lim \(\lim_{x_{\vec{ }}0}\frac{e^x-1}{x}\)