to consizae 60=80,000 today and c3=66,000 tomorsor. (a) If there is no opportunity to borrow or lend can Jours achirve his consunaption objective? Explain. (b) Suppone there is a perfect capital market in which Joors may berow oe lenad as cosaumpion objective? Explain. (c) Suppoee that in adilition to a perfert capital marbet loers lae an opportimity to objective. objective? Explain. mach as he desires at the market interest rate of 10\%6. Can foes now achieve lais coensumption objective? Explain. (c) Suppose that in addition to a perficet capital mariont Jones hes an opportunity to (d) Explain exactly what Joens must do geing, the capital marlurt and imvestramt opportunity avilable to him no that be may exactly achirve his cosoumption objective. m0=90,000 today and m2=500,000 totnorrow. There is a perfect capital marlaet for borrowing and letadiag at the tuarkat rate of interret of 253 per pretiol. (a) Determine the optimal consumptioe plan for Smith. Fxpiain exactly what Smath must do ench period to achieve his optimal consumption plan. (Recall that 84lnx= 1/xi) (b) Smith has an opportanity to imvot I0=80,000 today and receive f(L0)=135,000 tomotrow, Should be take advantage of this opportanity? If not, explain why not. If so, explain exactly what be shoold do each period to ackirse his new optisual consuazption plan. (c) If Smith no longer has access to the capital market (he cannot borrow or lenef), then your ranoenine