1) Senator Bernie Sanders has made a promise in his 2020 presidential campaign to completely forgive federal student loan debt for existing borrowers. A federal student loan borrower on a REPAYE plan is required to pay 10% of their discretionary income (for a single-person household in 2019 this was any income above $18,735) towards their student loans every month. a) Draw a budget constraint for a student loan borrower on a REPAYE plan in a single-person household with no other endowment. b) What effect would Senator Sanders' debt forgiveness plan have on this budget constraint? Would it likely increase or decrease the labor hours supplied by a work-preferring individual? Draw and discuss using the concepts of income and substitution effects. 1) Senator Bernie Sanders has made a promise in his 2020 presidential campaign to completely forgive federal student loan debt for existing borrowers. A federal student loan borrower on a REPAYE plan is required to pay 10% of their discretionary income (for a single-person household in 2019 this was any income above $18,735) towards their student loans every month. a) Draw a budget constraint for a student loan borrower on a REPAYE plan in a single-person household with no other endowment. b) What effect would Senator Sanders' debt forgiveness plan have on this budget constraint? Would it likely increase or decrease the labor hours supplied by a work-preferring individual? Draw and discuss using the concepts of income and substitution effects