MrOBKandle Has a Utility Function C₁c₂, Where C₁ Is His

Multiple Choice

Mr.O.B.Kandle has a utility function c₁c₂, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He has no income in period 2.If he had an income of $70,000 in period 1 and the interest rate increased from 10 to 16%,

A) his savings would increase by 6% and his consumption in period 2 would also increase.
B) his consumption in both periods would decrease.
C) his savings would not change but his consumption in period 2 would increase by 2,100.
D) his consumption in both periods would increase.
E) his consumption in period 1 would decrease by 16% and his consumption in period 2 would also decrease.