1. Assume a consumer who has current-period income 3-\" = 125, future-period income if = 150. current and future taues t = so and t'=45, respectively, and faces a market real interest rate of r = [105. or 5% per period. The consumer would like to consume equal amounts in both periods; that is, he or she would like to set c =c'. if possible. [a1 Show the consumer's lifetime budget oonstraint and indifference cunres in a diagram. [b] Calculate his or her optimal current-period and future-period consumption Ind optimal saving and show this in your diagram. Is this consumer a lender or a borrower? [:1 Assume now that the the market real interest rate of r=i}.1. or 10%. Con'ipute and show on your graph the new optimal current and future consumption. Are there amr substitution and income effects? Explain