Can I have help with the following question, thank you!

1. Consider a two-period, small, open, endowment economy populated by households with prefer- ences described by the utility function given by 1 2 (01 6)? inch 6)? where 5 represents a satiation level of consumption, and E denotes the mathematical expectations Operator. In period 1, households receive an endowment Q1 2 1 and have no assets or liabilities carried over from the past (BE; 2 U). Households can borrow or lend in the international nancial market at the world interest rate r* = 0. Compute consumption and the trade balance in periods 1 and 2 under the following two assumptions regarding the endowment in period 2, denoted Q2: (a) Q2 equals 1 and (b) Q2 is random and takes the values 0.5 with probability 1/2 or 1.5 with probability 1/2. (C) Provide intuition for your ndings