Characterize the solution ignoring the no-borrowing constraint (or put differently, assume for the moment that borrowing is permitted). 2. Solve the problem when borrowing is permitted. A full solution consists of op- timal consumption and optimal savings/borrowing. Hint: you do not need a specific parametric form for u. 3. Formulate the Lagrangian and characterize the solution when borrowing is not permitted, at 1 0. 4. Solve the problem when borrowing is not permitted. A full solution consists of optimal consumption and optimal savings. Hint: you do not need a specific parametric form for u