The economy exists for two periods. There are two different types of consumers. The type A has anincome of yA1 = 100 in period 1 and yA2 = 100 in period 2. The type B has an income of yB1 = 0in period 1 and yB2 = 200 in period 2. The interest rate for both borrowers and lenders is r > 0.Consumers pay no taxes