Suppose that a consumer can borrow only with collateralizable housing wealth as security against the loan. As a result, the budget constraint is kinked. Initially, the budget constraint shifts in with a decrease in the price of housing from p to p2. For example, in the above figure, the initial budget constraint ABD shifts to FGH in this case. What is the value of current consumption at point G in the given figure? Future Consumption, c' y' t' + pH A F E y-t G H 12 B D 4 Current Consumption, c