But suppose we abstract from this compleititjrr of the rem world and imagine that the credit market involves only domestic households, without government or business borrowing. a single interest rate r prevails, all households have the same after-tan incomes, and these after-too: incomes are the same in both periods: y - t = p' - t'. For all households, current and future consumption are prefect eomplanents. Households are divided evenlyr into two types: type A and type B. Taupe A households have preferences such that c' = so, while type B households have cr = be, with o. 3E .5. Use this backgromd to answer the following questions. {a} what is the reduced form equation for saving by type A households, as. {In} What is the analogous expression for 53, saving by type B households\