HI, need help with the math.

Consider an infinite period small open economy. The world interest rate is 5%. Investment and government expenditures are both equal to zero, as well as the initial level of NIIP. The country produces only a fixed amount of oil in each period equal to 1000 barrels. The country imports consumption goods at the international price PC = PC at each period and exports oil at price P. . Suppose that the two prices are equal to begin with. Suppose that there is an unexpected drop in the price of oil in year 1 from 1000 to 750, and the price is then expected to return to the initial level in every future year. . If the country desires to smooth consumption over time (that is, consumption is equal in every period after the new information is revealed), what is the new level of consumption that is consistent with the intertemporal budget constraint? What is the trade balance in period 1 and in future periods? How much does the country borrow in period 1? To answer this question, use the intertemporal budget constraint (conditional on an expected path of output levels and prices), PAQIt P2 Q2 X Q3 + 1 (1 + px)at... = PCC 1+ + (1 + * ) 2 + ... where "* = 0.05 and we imposed that C = C1 = C2 = ... [HINT, keep in mind that 1 + 1. + Than? + . Repeat, assuming the following: 1. How does your answer change if the decline in the price of oil is permanent? 2. How does your answer change if there is no change in the price of oil, but instead there is a decline in the endowment (i.e. quantity) of oil equal to 25% of the original quantity