Consider a consumer who lives for two periods and can borrow and lend at a real interest rate of 5% per period. The consumer pays social security taxes in the first period and receives a social security benefit in the second period. Suppose that a change in government policy increases the social security tax in the first period by 100 dollars and increases the social security benefit in the second period by 106 dollars. What is the impact of this change in government policy on the consumer's optimal consumption in the first period?
A. Optimal consumption in the first period falls by more than one dollar.
B. Optimal consumption in the first period falls by one dollar.
C. Optimal consumption in the first period falls by less than one dollar.
D. Optimal consumption in the first period increases.
Note: Please show all the work, thank you!