Consider a two-period model economy with a representative consumer and a government. The consumer has an exogenously given endowment stream (Y1,Y2) and preferences over consumption plans (01,02) which can be represented by the utility function 0101,02) = min{Cl, 502} where the parameter ;3 E (0, 1} is the subjective discount factor. The govermnent has an exogenously given consumption plan (Ghag). The economy is initially in a competitive equilibrium with TfE = 01 + 02, 0103 = 0.8K, and r05 = 0. Assume that Y1