Suppose that a person lives for two periods, earning $30,000 in income in period 1, which she

Question:

Suppose that a person lives for two periods, earning $30,000 in income in period 1, which she consumes or saves for period 2. What is saved earns interest of 10% per year.
a. Draw that person’s intertemporal budget constraint.
b. Draw that persons’s intertemporal budget constraint if the government taxes interest at the rate of 30%.