Solve clearly

1. Consider the following value Y1 = 1500, Y2 = 2000, r = 10% (a) Find the present value of the lifetime income of this individual. (b) Suppose that the preference of the consumer are such that they want to have the same consumption in each period i.e. ci = c2. Find the values of cr, S, and co using this assumption. (Hint: Use the lifetime budget constraint). (c) Suppose that the current income (Y1) increases to 2000. Find the new value of c and find the value of marginal propensity to consume