(i) If the consumer would like to consume equal amounts in the two periods, how much does he need to save in period 1? How much will he end up consuming in both periods? Assume that the government must spend a total of 200 in the rst period to repair a damaged bridge, and that spending is nanced by a distortionary tax on all 1i} consumers: every .1." dollars {per capita) raised cost consumers m + x? dollars. {ii} Should the government run a decit? Why? (iii) If the answer to {ii} is yes, how large exactly should the decit be? {iv} Assume now that the spending must take place in period 2 instead of period 1. How do your answers to parts [ii] and (iii) change