In this problem we will revisit the analysis in chapter 6 of the textbook but we will assume that households are risk neutral in period 2 rather than risk-averse. Assume the following preferences ln(C1)+E(C2) where C1 and C2 are the consumption in periods 1 and 2, respectively. Note that the second period utility does not have any logarithm-the preferences are logarithmic in period 1 but linear in period 2 consumption. Assumed that the households can borrow or lend at the foreign interest rate r. Furthermore, consider a situation in which Q1=Q, but Q2 is unknown in period 1 . In particular, assume Q2={Q+Qwithp=0.5with(1p)=0.5 Finally, assume B0=0. 4.a) (6 points) Compute the expected value and the standard deviation of Q2 (the endowment in period 2). 4.b) (10 points) Assume that =0. Find the equilibrium values of c1 and B1. 4.c) (14 points) Now assume that >0. Find the equilibrium value of B1. What is the predicted effect of the precautionary savings on the current account? Explain