(b) (15 points) Production Economy. Please explain if the following statement is true or false: In the two-period model reviewed in Chapter 5 of Schmitt-Groh, Uribe, and Wood- ford, a FALL in the world interest rate (1') is associated, all else equal, with a fall in the rms\" prots of the second period (H2), an increase in consumption in period 1 (01), a fall in savings in period 1 ($1), an increase in investment in period 1 (I1), and an improvement in the Current Account of period 1. Do not forget to show step by step your algebraic calculations. Support your explanation with equations and a graph of the optimal allocation of consumption. No credit without an explanation