Consider an agent who lives for two periods, with income Yin period 1 and income Yin period 2. The agent can borrow and lend any amount at the real interest rate r, and there are no taxes

a) Assume the agent is a saver. Illustrate and provide intuition for their optimal consumption choice in periods 1 and 2 and how it relates to their initial endowmentand their budget constraint.

b) Again, assuming the agent is a saver and on a separate diagram,graphically illustrate and explain the effects of contractionary monetary policy through an increase in the real interest rate, r. In your answers show any income and substitution effects,give intuition for any change in the intertemporal consumption choice.

please amswer question a) and b)