I. Intertemporal Trade (Part I): Consider the intertemporal model with two time periods t=0 and t=1. Home is a small open economy that can borrow and lend in the first period at a fixed world real interest rate of 4%. In the first period output is Q.=800. Because of a recession, output in the second period is expected to fall to Q,=500. The country wants to smooth consumption as much as possible. The country begins with no external assets or liabilities. Finally, assume that the intertemporal utility function at Home is U(C,;C)=min[C:C,} 1. (1.5 points) Solve for consumption, the current account, and financial account in the first period (t=0)