Question

Hi! I have an upcoming exam tomorrow afternoon and I would like you to assist me with the following. The instructor gave the class some topics we should focus on.

a. Understand marginal rate of capital service

b. difference between bond holding and saving

c. How to derive algebraically two-period budget constraint.

d. Absolute vs conditional convergence

e. what budget constraint exactly means.

Thank you for your help. Part (c) is the one I am really worried about.