Jack and Jill are making consumption and savings decisions for two periods. Jack earns $100 in the first period and $100 in the second period. Jill however earns nothing in the first period and $210 in the second period. Both can both save and borrow at the interest rate r. They are both complete consumption smoothers. a) If both are consuming $100 in both periods what is the interest rate? b) Suppose interest rates double. What will happen to Jack s consumption in the first period? Is he better or worse off. c) Given interest rates double from a. What will happen to Jills consumption in period 1? Is she better or worse of?