Consider the limit commitment model we learned in Chapter 10. Suppose that there is limited commitment in the credit market and lenders use their homes [H] as collateral [mortgage loans]. The price of homes is given by p in the future period and hence the future value of homes is pH. Homes are illiquid and cannot he sold in the current period. The oonsumers have y and 33 units of income in the current and future periods. We assume the tax t and i' are zero and the interest rate is 1" for both borrowing and lending. Answer the following questions. 1. [5 Points] Use a gure with current and future consurnptions c and dr on the horizontal and vertical axis and illustrate the lifetime budget constraint in the gure. 2. [1'3 Points} Explain what will happen to consumptions c and c'r if the housing price p decreases