Section 3. A Zero-lnterest-Rate Economy [11 points] Consider a twoperiod economy populated by households with preferences described by the utility function: U = 01 + 3/02 In this economy, the households start period 1 with zero assets [33: 0} and receive endowments Q1 = 2 and Q2 = 4 in periods 1 and 2. respectively. The economy has free capital mobility, and the world interest rate r'= D. Calculate the equilibrium levels of consumption and the trade balance in period 1 {C1 and T31}. @copyright