Nick has an income of this year and he expects and income of next year. He can borrow and lend money at an interest rate of . Consumption of goods cost $1 per unit this year and there is no inflation. Let and denote Nick's consumption this year and next year, respectively. Suppose that the interest rate decreases to for both saving and borrowing. Discuss, using a diagram and your own words, how revealed preference determines Nick's new consumption bundle if he borrows money this year.