Question 1: A Two-Period Model with a Perfect Credit Market Consider the two-period model of consumption-savings decisions with a perfect credit market. An intertem- poral consumption-savings decision implies an economic trade-off between current and future consumption, where the interest rate is used to identify the present value of future consumption goods. (a) Starting from the consumer's current-period and future-period budget constraints, derive the con- sumer's lifetime budget constraint. (b) Re-write the lifetime budget constraint in slope-intercept form, and draw a graph of the consumer's lifetime budget constraint. (C) Suppose that you win the lottery, which offers a one-time large cash settlement. How would this change your (i) current consumption, (ii) future consumption and (iii) savings, as predicted by the model? Draw a graph and make reference to it when answering this question. (a) Suppose that instead of winning the lottery, you are offered a job that will begin immediately after you graduate from Brock University. How would this change your (i) current consumption, (ii) future consumption and (ii) savings, as predicted by the model? Draw a graph and make reference to it when answering this question. Question 1: A Two-Period Model with a Perfect Credit Market Consider the two-period model of consumption-savings decisions with a perfect credit market. An intertem- poral consumption-savings decision implies an economic trade-off between current and future consumption, where the interest rate is used to identify the present value of future consumption goods. (a) Starting from the consumer's current-period and future-period budget constraints, derive the con- sumer's lifetime budget constraint. (b) Re-write the lifetime budget constraint in slope-intercept form, and draw a graph of the consumer's lifetime budget constraint. (C) Suppose that you win the lottery, which offers a one-time large cash settlement. How would this change your (i) current consumption, (ii) future consumption and (iii) savings, as predicted by the model? Draw a graph and make reference to it when answering this question. (a) Suppose that instead of winning the lottery, you are offered a job that will begin immediately after you graduate from Brock University. How would this change your (i) current consumption, (ii) future consumption and (ii) savings, as predicted by the model? Draw a graph and make reference to it when answering this