Questions on the consumption'saving model Graphical questions 1. a. Draw a budget line and indifference curves for a consumer who initially is a lender. Be sure to indicate the no-horrowing, no-lending point and the optimal consumption point. Then show the effect on the budget line and the consumer's optimal consumption of an increase in the interest rate and an increase in current income. Explain the intuition behind the consumer's new optimal choice. b. Do the same for an increase in interest rate and an increase in future income