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 U(01,Cz) = min{Ch 502} where the parameter I3 E (0,1) is the subjective discount factor. The government has an exogenously given consumption plan (01,02). The economy is initially in a competitive equilibrium with TEE = 01 + 02, CFE = 0.8K, and r05 = 0. Assume that Y1