Consider an OLG model where each person is endowed with y when young and nothing when old with a population growth rate of n. Also, assume the money supply grows at a rate of z>1. If a lump sum tax t is collected from old generation, what are the first-and second period budget constraints? a) C1,t + vtmt ≤ y
C2,t+1 +Vt+1 mt ≤ c b) C1,t + Vt+1mt ≤ y C2,t+1 + Vtmt ≤c
c) C1,t + vtmt ≤ y C2,t+1 ≤ Vt+1Mt - v d) C1,t + Vt ≤ y C2,t+1 +v ≤ Vt+1