provide explanation

In the current period, a consumer gets an endowment y and pays lump-sum tax t. In the future period, the consumer is endowed with and faces the lump-sum tax of . The consumer can borrow at rate and lend at the rate . where . Show the consumer's lifetime budget constraint, indifference curve, optimal consumptions bundles in a diagram (illustrate both type of consumers, borrowers and lenders) with the future consumption on the vertical axis and current consumption on the horizontal axes. (i) Suppose that the rate at which consumers can lend got increased to , so . That is, borrowers and lenders face the same rate. How does this increase affect the optimal choice of consumption (in the current and future periods) and savings for the consumer? Illustrate and explain how income effect and substitution effect matter for your answer for both lenders and borrowers. (ii) Now, suppose that the rate at which consumers can borrow got decreased to , so . That is, borrowers and lenders face the same rate again, but now the lower rate. How does this increase affect the optimal choice of consumption (in the current and future periods) and savings for the consumer? Illustrate and explain how income effect and substitution effect matter for your answer for both lenders and