3. (30 marks) Consider the twoperiod eoonornj.r where the representative oonsumer (i.e., m = 1) has incomes of y in the current and y" in the future period, and faces a real interest rate in the credit market of r. The government does not have any expenditures in the current or future period, i.e., G = G\" : 0, but instead runs a loan program. The government makes loans to the consumer of amount L in the current period at the lower than market rate of r9 <: r. the government loan is nanced by a lump-sum tax t on consumer in current period. future period repays to and rebates this through transfer tr using present value constraints explain effect of program consumption choices welfare>