3. Consider the following 2period model of consumption and saving: U = 4ll\"(01)+ Blnlozll (1) C 7 Cl+1+2$=Y1+1+2W (2) where 01 is period 1 consumption, 02 is period 2 consumption. Households receive given income 71 in period 1 and 72 in period 2. Households can borrow or save at a given interest rate 77, and their aim is to maximize lifetime utility (U). We consider the case where: 71 = 5, V2 2 1.5, = 0.5, and r = 0.5