Now assume that the interest rate drops to r=5% Assuming Y0=1000, Y1=600 and C0=800, calculate C1. Use the intertemporal budget constraint formula: C0 + C1/(1+r) = Y0 + Y1/(1+r) This budget constraint equation represents an individual planning her consumption over two periods (before retirement 0, after retirement 1). This an intertemporal budget constraint in which the present value of consumer expenditures must equal the present value of income in the two periods. Where Y represents income, C represents consumption, and r represents rate of return. Group of answer choices 868 822 876 810