Consider two households, one middle class, and one wealthier household. Assuming these are optimal indifference curves, which IC below represents which household, and how doe know? Define marginal rate of substitution (MRS). Explain similarities and differences between MRS for these two households. Goods in Future IC 1 IC 2 Goods in Present Define the marginal rate of transformation in this problem and explain how the MRT relates to the MRS in the optimal choice of consumption.