Q3. In one economy there are two consumers, Rebecca and Sarah. They are living 2 periods: 1 une present and 2 the future. Their utility functions are the following UR log(c)+log(C2) and Us = log(c1)+2log(c2) Rebecca and Sarah work at the same firm, Rebecca has a salary equal to 150 per period, while Sarah has 100 per period. The real interest rate in the economy is 10%. a. Compute the optimal allocation of consumption for both consumers b. Suppose that the government wants to increase taxation on the rich, so it announces that it is going to tax 5% of accumulated savings in period 2. Compute the new optimal allocations.