I am not sure how to approach this question with two period model of labor supply. What are the steps to be taken to reach the conclusion on true or false?

Consumption Response Consider a simple two-period model of labor supply, where we assume that utility is separable in consumption and labor supply: ho hito max log co - p- 1+0 + Blog ci - $- {co,c1,ho,h1,a1} s. t. Co + a1 = woho + (1 + ro)do C1 = wih1 + (1+ r1)a1 for given ao= 0. Assume ro , ry are exogenously given. We know the household has the following intertemporal labor supply condition: W1 (1+r1)wo ' and the solution for ho is given by: W1 (1+r1)wo = (1 + B ) . Suppose there is a permanent change to wages at the beginning of time 0: both wages in the first and second period increase by 10%. Then this household will take advantage of this opportunity and consume more in co by 10%. True or false