In the current period, a consumer gets an endowment y and pays lump-sum tax t. In the future period, the consumer is endowed with y' and faces the lump-sum tax of t. The consumer can borrow and lend at the rate r. Suppose that the consumer faces an increase in real interest rate from r1 to r2. A) Write down the budget constraint before and after the change in r and show in a diagram. B) With the help of diagram show the impact of the increase in r on the current and future consumption, and savings