2. (18 points) Consider the following two-period model of consumption. The income in the first and second periods are Y, and Y2, respectively. The interest rate is r. The lifetime utility function is Cl/2 + BC2/2. 1) (10 points) Find the optimal values of C, and C2 in terms of Y1, Y2, and r. 2) (8 points) Suppose the income in the first period increases by $1. How much does C, increase? How does your answer depend on the values of B and r? Please provide economic intuitions for your