Steve has the utility function U(cl, Cg) = c:/2 + 2c21/ 2where cl is his consumption in period 1 and (:1 is his consumption in period 2. He will earn 100 units of the consumption good in period 1 and 100 units of the consumption good in period 2. He can borrow or lend at an interest rate of 10%. Write an equation that describes Steve's budget constraint and explain how you nd it. If Steve neither borrows nor lends, what will be his marginal rate of substitution between current and lture consumption? Show your calculation. If Steve does the optimal amount of borrowing or saving, what will be the ratio of his period 2 consumption to his period 1 consumption? Explain your