In your answers, label all intercepts, coordinates, slopes, and axes.

a. A consumer lives for two periods and earns an income of $100 and $120 in the first and second periods respectively. They can borrow and lend money between periods at an interest rate of 5%. They can spend their income on a consumption good x in each period, that cost $1 per unit. Draw this consumer's budget constraint for consumption x1 and x2 in periods 1 and 2 respectively. Ifthis consumer's utility function is given by U(x1,x2) = Jar1 + 0.8,]?2 calculate this consumer's optimal consumption in each period. Is this consumer a saver, or a borrower