With this interemporal Budget line, answer b and c (please graph it)!!!(b) Sketch the intertemporal budget line and indicate the segment corresponding to s ? (-12/(1 + i), 0], the segment corresponding to s = 0, and the segment corresponding to s ? (0, 11]. What do each of these cases represent?Clearly label your graph. (c) Show graphically the effect of an increase in inflation on the budget set.

12 + I1(1 + 2) P1(1 + i C2 = C1 Pl (1 + pi) Pl (1 + pi