2 Two-Period Model Cookie Monster lives for two periods (period 0 and 1). 1. r E Explain why 51, his savings in period 1, are not positive. 2. i: B Suppose that Cookie Monster 's prefer- ences are represented by 1 \"(Cos I31:} = 1035:] + 510351: and his income is (ya, 9'1) = (16, 21]), of which the government takes away (tn, t1) = (6, 0). Due to his reckless eating habit, no one wants to lend him. As a result, in addition to his usual in- tertemporal budget constraint, he also faces credit constraint 5\" E 0. The interest rate is given by r = 1. Write his utility maximization problem. 3. 'k a With c on the horizontal axis and c1 on the vertical axis. shade in his budget constraint in item 2