Part 2 (2 points) 0 See Hint If income in the current period is m1 and the interest rate is 25.00%, the derivative of the demand function for future consumption with respect to m1 equals . The derivative of the demand function for future consumption with respect to m2 equals . Give answers to two decimals. Part 3 (1 point) 0 See Hint What you should see from the previous parts ofthis question is that both current and future consumption are normal goods {their demand rises when income rises). In this case, given the utility function, the indifference curves are smooth, are well-behaved, and bow in toward the origin. Considering this case, which of the following statements are applicable to an increase in the interest rate (all else being equal)? Choose one or more: C] A. The increase in the interest rate can turn a borrower into a saver. C1 B. The increase in the interest rate can turn a saver into a borrower. III C. The increase in the interest rate cannot turn a saver into a borrower. C1 D. The increase in the interest rate cannot turn a borrower into a saver. Consider a utilitymaximizing consumer with preferences over consumption now and in the future given by the utility function \"(ch c2) : c9'25cg'75, where c1 is current consumption and (:2 is future consumption. Assume that the consumer receives positive (greater than zero) income both now and in the future. The price of consumption is $1 in both periods (there is no ination), and the consumer can borrow or save at an interest rate 'r. v 2nd attempt Part 1 (2 points) 0 See Hint If income in the current period is m1 , the derivative of the demand function for current consumption with respect to m1 equals . Let the income in the future period be m2 and the interest rate be 25.00%. The derivative of the demand function for current consumption with respect to m2 equals . Give answers to two decimals