In the Life Cycle Model, Total Amount Available for Consumption

Multiple Choice

In the life cycle model, total amount available for consumption in period 0 is:

A) C₀ = M₀ + M₁ - C_1.
B) C₀ = M₀ + (M₁ - C₁) /(1 + i) .
C) C₀ = M₀ + (1 + i) (M₁ - C₁) .
D) C₀ = M₀ + (1 + i) /(M₁ - C₁) .