please answer part e&f Question: The following problem takes a person who can borrow or save,and then lets them invest in their own human capital.That is saving earnings today is not the only way to be able to have more to spend tomorrow. Suppose Rod faced a human capital invest(HCl) curve for education. a.Graph this onto the above graph starting at his endowment. b.What does the slope of the curve indicate? c.Using indifference curves,mark his best choice on the HCl if he cannot borrow or save At this point what does the slope of the indifference curve equal and what is its interpretation? d.Now assume that he can borrow or save (at 25).Redraw the graph showing this and the amount of education he chooses. e,Mark his decision and consumption in the two periods. f.if interest rates went down,could you determine whether his spending on education increases or decreases? What about his period1.consumption?
