Samantha Smoothie's Utility Function Is U(c₁, C₂) = C₁c₂, Where

Multiple Choice

Samantha Smoothie's utility function is U(c₁, c₂) = c₁c₂, where c₁ is her consumption in period 1 and c₂ is her consumption in period 2. She earns $200 in period 1 and $220 in period 2. Samantha can borrow and lend at an interest rate of 10% and there is no inflation. The number of dollars that Samantha spends in the second period must be

A) more than 200 but less than 220.
B) exactly 220.
C) more than 220.
D) exactly 200.
E) less than 200.