To be continued 1. Without the loan market she consume her endowments: C0=100. C=25 2. With the loan market she lend 37.5 now and receive 37.5 later. her consumption is Co=62.5 and c1=62. 5 the same over time she is now better off 3. At the endowment, she prefer I later over 1 now at the optimum, she is different between later and i nowTo be continued 1. Without the loan market, she consume her endowments: C 0=100, C1=25. 2. With the loan market, she lend 37.5 now and receive 37.5 later, her consumption is C 0=62.5 and C 1=62.5, the same over time, she is now better off. 3. At the endowment, she prefer 1 later over 1 now; at the optimum, she is different between 1later and 1 now