For the two-period model Consider the following effects of an increase in taxes for a consumer:

1. The consumer's taxes increase by t in the current period. How does this affect current consumption, future consumption, and current saving?
2. The consumer's taxes increase permanently, increasing by t in the current period and future period. Using a diagram, determine how this affects current consumption, future consumption, and current saving. Explain the differences between your results here and in part (1).

Please provide calculations with an explaination.