(C) Write down the Euler equation for the consumptionsavings model with log-utility. Explain in words what the mathematical equation says about the way households make consumption and savings decisions. (D) Suppose that in response to a recession, the government institutes a budgetneutral tax policy which provides income transfers to households today that will be paid for by future tax increases. Using the consumptionsavings model, explain whether such a policy will stimulate spending today. Justify your answer. 12