Very struggled with this question.

Question 32: Consider an individual that must decide how much to consume in a twoperiod model. Suppose that her preferences for present consumption ((31) and future consumption (c2) can be characterized by the following utility function: u(c1,02) = cll 20\\/c_2 Assume that her income in the present period is M1, her income in the future period is [142, and the nominal interest rate is 2'. Further, assume that the price index in the present period (191) is 1 and the price index in the future period (p2) is P2 = (1+ 601% Where d is the rate of ination. (a) [6 marks] Derive this individual's marginal rate of time preference (MRTP). What does her M RT P say about her willingness to sacrice future consumption for more present consumption? Use an appropriate diagram with Cl on the horizontal axis to ex plain. (b) [9 marks] Solve for this individual's optimal choice of Cl and C2 respectively. ls cl an increasing or decreasing function of d? What about C2? What does the relationship between c1 and 01 say about the substitutability of (:1 and 02? Explain. (c) [5 marks] For What values of d will this individual be a saver? Explain