Now assume that the income in period 1 increased to Y1=$1100 because of Social Security benefits increased . Period 0 income and the interest rate are unchanged, Y0=1000, and r=5%. This individual now consumes C1=900, what is the new C0,? You can round the final number. Hints: You were given the equation above that represented an intertemporal budget constraint, in which the present value of consumer expenditures must equal the present value of income in the two periods: C0 + C1/(1+r) = Y0 + Y1/(1+r) Now you are being asked to take this equation and solve for C0 You have been given the rest of the variables: C1=900 Y0= 1000 Y1= 1100 r=0.05 Once you plug in the numbers for these variables, the equation look like this: C0 + 900/(1+0.05) = 1000 + 1100/(1+0.05) Now solve for C0