I- I. .- 2. {W'illiamson Chg Q] A consumer receives income 3; in the current period._ income y" in the future period._ and pays taxes of t and t' in the current and future periods respectively. The consumer can lend at the real interest rate r. The consumer is given two options. First, he or she can borrow at the interest rate r but can onlyr borrow an amount a: or less_~ i.e., c E .U- t+r._ where J: -:: me y+t with use denoting lifetime wealth. Second he or she can borrow an unlimited amount at the interest rate r9, where r3 :=- 1". Use a diagram to determine which option the consumer chooses~ and explain your results