(An Unexpected Policy Change) Consider a two-period open economy inhabited by households with preferences given by the utility function (C_1 ) (C_2 ), where C1 and C2 denotes consumption of an imported good, and = 10/11 is the subjective discount factor. The economy produces Q1 = 10 and Q2 = 11 units of an exportable good in periods 1 and 2. Households start period 1 without debts or assets (B0 = 0) and the world interest rate is 10 percent (r = 0.1). Let 1 and 2 denote import tariffs in periods 1 and 2. The government rebates tariff revenues through lump-sum transfers denoted L1 and L2. Calculate the equilibrium values of consumption and the trade balance in periods 1 and 2 under free trade (1 = 2 = 0). C1 = C2 = 10, TB1 = 0, TB2 = 1