In a two-year period, Jean has earnings of 6 million this year and earnings of 10 million next year. She can borrow or lend at an interest rate of 25%. Suppose that Jean decides to borrow 1 million in year 1 (this year). 0 Show Jean's optimal consumption in a diagram. Identify the amount borrowed in year 1, the amount repaid in year 2, con sumption in year 1, and consumption in year 2. [5] oJAssume now that Jean's earnings in year 1 fall to 4 million due to a change in taxation. How will this change in income affect the amount she borrows, her consumption in year 1, and her consumption in year 2? Given that her earnings fall by 2 million in year 1, will her year 1 consumption fall by the same amount? Explain your answer. [5]