3. (14 marks total) In this question, we consider what happens when the household faces both a spread between borrowing and saving interest rates and a borrowing constraint at the same time. That is, we consider the household problem as stated just before the beginning of Section 1.1 of LN6: maximize equation (4) subject to the constraints (1), (3), and (5). Assume throughout that rb >rs (strictly positive spread) and 0 0 is optimal; (ii) E is optimal; (iii) rs (strictly positive spread) and 0 0 is optimal; (ii) E is optimal; (iii)