Please refer to the image to answer all parts 1-4.

There is a consumer who lives for two periods. His income is given by Y1 and Y2. He has access to the credit market with the interest rate r. The government collects lump-sum taxes T1 and T2 (note that T1 and T2 might be negative meaning that the government makes a transfer). The government can run a surplus or a decit, but must borrow (or save) in the credit market at the interest rate r. 1. Write down the government intertemporal budget constraint. Note that the government also has access to the credit market. Write down the consumer's budget constraint. Show the consumption choice graphically. 2. Imagine that the government increases the taxes in period 1 and introduces a tax cut in period 2 to pay back any debt and interest om the previous period. This is anticipated by consumers. Show the new consumption choice. How does that compare to the result from the previous section. 3. Assume that the government is not constraint by the balanced budget and can have decit in both periods. Now the government is being generous and pays transfers 'I'1 > 0 and T2 > 0. Show the new consummion choice. 4. Now assume that consumers believe the government will behave as in part 3, but in the second period the government is forced to settle the decit (note that the government has to pay back the interest rate). What will happen to the consumption choice? Are the consumers better off