10. Karen earns $75,000 in the current period and will earn $75,000 in the future

a. Assuming that these are the only two periods, and that banks in her country borrow and lend at an interest rate r 0, draw her intertemporal budget constraint.

b. Now suppose banks offer 10 percent interest on funds deposited during the current period, and offer loans at this same rate. Draw her new intertemporal budget constraint.