) Suppose you expect to live three periods and expect to earn $40,000 in the first period, $80,000 in the second period, and $30,000 in the third period. a. According to the life-cycle model, how much would you consume in the first period? (4 points) b. According to the life-cycle model, how much would you save or borrow in the first period? (4 points) c. Now suppose that you are liquidity constrained, meaning that you cannot borrow against future income. In this case, how much would you consume in period 1? (3 points)