2 Two-Period Model Cookie Monster lives for two periods [period T = and 1. In what follows, subscript T denotes period}. He earns y.\" pays ET for tax and consumes cT baskets of numeraire composite goods in each period. He will choose (cg, cg} to maximize his utility level under his (usual) budget constraint. Now suppose that Cookie Monster faces an addi- tional constraint. He can: [a] neither save or borrow. {b} save but not borrow. (c) borrow but not save. 1. 1* With :50 on the horizontal axis and c1 on the vertical axis, shade in the set of affordable bundles in each case above. 2. t In each case in item 1, fill in in- difference curves where the additional constraint will not affect his consumption choice. Namely. present a case where he will choose (c3, cf} whether he faces the additional constraint or not. 3. Consider item (c). Suppose that unlike item 2, {c3, ci'] falls outside the area you shaded in item 1. Can the government help him still choose (cg, ci'} while keeping to their own budget con- straint? If so, how? If not, wh}r not