Question 1 [12 points] Chapter 1: Consider an economy where n = 1.15and yf=1.2yt_1[an economy where both population and endowment are growing. Assume old people do not receive any endowments. Assume that a young person's preferences are such that they want to consume three-fourth of their endowment such that [Lt = 0.75)\"? ASSUME STA TIONARY EQUILIBRIUM. GIven the data above: i. Derive the Lifetime Budget constraint in the context of a monetary equilibrium where young individuals save money for old age consumption. {2 marks] ii. Use the money market equilibrium to solve for real rate of return for money. Assume the initial old is endowed with M units of fiat money. {3 marks]. iii. For parts iii and iv use record keeping equilibrium scenario involving intergenerational transfers from Chapter 1. where young person transfers to old person. There is no money in the economy for parts iii and iv. Write down the equilibrium condition where demand for transfers match with supply of transfers at time t. {3 marks]. iv. Based on your answer from part [iii], using the equilibrium for transfers - find the rate of transfer between young and the old. [4 marks]