Draw and explain a graph for a two-period consumer. Include the budget line, indifference curve, utility maximization, and all labels. a.     Draw the effect of an increase in the interest rate. Show graphically and explain the effect on the level of consumption C1 and C2. b.     Why would C1 change? Explain c.      Why would C2 change? Explain

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Draw and explain a graph for a two-period consumer. Include the budget line, indifference curve, utility maximization, and all labels.

a.     Draw the effect of an increase in the interest rate. Show graphically and explain the effect on the level of consumption C1 and C2.

b.     Why would C1 change? Explain

c.      Why would C2 change? Explain

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