l. A consumer receives income 1: in the current period and income 32' in the future period, and pays lump sum taxes of t and t' in the current and future periods, respectiVely. The consumer can borrow and lend at the real interest rate r. This consumer faces a constraint on how much he or she can borrow, much like the credit limit typically placed on a credit card account. That is, the consumer cannot borrow more than I, where xwe-y, with we denoting lifetime wealth. Use diagrams to determine the effects on the consumer's current consumption, future consumption, and saying of a change in r, and explain your results. Present analysis when the constraint is binding and when it is not binding