Consider a two-period model, inhabited by two individuals1 Anna and Bob for as they like to be called1 A, and B}. A has the following preferences \"A {inf Cf.) = 1151'???) + 1111:1314), while B has the following preferences \"3 {31153 6?) = his?) + \"1(st Consumer A receives an income YA = 121 in period [l and 1"" = lfl in period 1. On the other side, I{Jonsumer B receives an income Y3 = lit} in period I] and 1'13 = 14!) in period 1. Assume the interest rate is r. A and B currently live happily as they do not have to pay taxes, and the government is not interfering with their spending habits. 1. llilompute the optimal consumption {c}, c1] for each individual. Hint: Your answer should depend on r. 2. Is the credit marlret at equilibrium when r = 5%? Hint: The credit market is cleared when the sum of the consumers savings in period {I is zero. 3. Find the equilibrium interest rate that clears the credit market