(Chapter 9) Consider a two-period intertemporal model. Consumers have the preference U(c,c)= c+c, where =0.95 is the discounting factor. A consumer's income in the current period is y=150, and income in the future period is y=75. She pays lump-sum taxes t=20 in the current period and t=10 in the future period. The real interest rate is 0.15 (or 15\%). (Hint: recall that MRSc,c=MUcMUc) a. Calculate the representative consumer's lifetime wealth and optimal choice of consumption each period. Show your work in a diagram with the consumer's budget constraint and indifference curve. b. Now assume the drops to 0.90, redo part (a). c. Explain the difference between (a) and (b). (Chapter 9) Consider a two-period intertemporal model. Consumers have the preference U(c,c)= c+c, where =0.95 is the discounting factor. A consumer's income in the current period is y=150, and income in the future period is y=75. She pays lump-sum taxes t=20 in the current period and t=10 in the future period. The real interest rate is 0.15 (or 15\%). (Hint: recall that MRSc,c=MUcMUc) a. Calculate the representative consumer's lifetime wealth and optimal choice of consumption each period. Show your work in a diagram with the consumer's budget constraint and indifference curve. b. Now assume the drops to 0.90, redo part (a). c. Explain the difference between (a) and (b)