Suppose the household chooses C I and C 2to solve the following maximization program given BE n3, {1. Q1 and Q2 argmamghgg [111(01) + [smog] subject to the intertemporal budget constraint [IBCJ where E}? is the lifetime Income (Wealth). The difference between the model we reviewed in class and this is that the lifetime utility has an extra parameter ()3) 3.al (6 points] Calculate the optimal allocation of C1 and C2. 3b} (6 points } Calculate the equilibrium levels of the trade balance and current account in period 1. F 3.c} (10 points} Explain how a lower discounting factor (0'