A consumer's income in the current period is y=100, and income in the future period is y'=120. He or she pays lump-sum taxes t=20 in the current period and t'=10 in the future period. the real interest rate =.1 or 10% per period.

D. Now Suppose that instead of y=100 it is y=140. determine optimal consumption in the current and future periods and optimal saving, and show this in a diagram. is the consumer a lender or borrower