Can you please explain these attached?

Assume utility is given by U(c,c') = lnc + lnc' with 3 6 (0,1]. Household net income today is y t and household net income tomorrow is y' t'. The household takes the interest rate 7' as given. 1. 2. Write down the household problem in this twoperiod model. Solve for optimal c and c'. . Now suppose the interest rate rises. Does the choice of (2 change? What does this imply about substitution and income effects? . Now assume that the discount factor B and the interest rate 7' are such that B = 1/(1 + 7'). Explain the relationship between current and future consumption at the optimal level. . Using your results from part 4, solve for the optimal choice of savings of the consumer. Suppose y t > y' t' . Is savings positive, negative or zero? What happens to savings if yt