3. Consider the optimization problem discussed in class where there are two-period income and consumption with a borrowing interest rate. By using the diagram approach, or with numerical examples, discuss the effect of following changes added to the simple framework. a. There is a consumtion tax (t %) on consumption b. There is a capital gains tax (g %) on investment c. Interest rate is negative INDIVIDUAL'S CONSTRAINED UTILITY-MAXIMIZING CHOICE OF CONSUMPTION STANDARDS Time 21 72=>+yl+r Repayment of borrowing plus interest Time 1 Borrowing I +r