Patience Has a Utility Function U(c₁, C₂) , Where

Multiple Choice

Patience has a utility function U(c₁, c₂) , where c₁ is her consumption in period 1 and c₂ is her consumption in period 2. Her income in period 1 is 3 times as large as her income in period 2. At what interest rate will she choose to consume the same amount in period 1 as in period 2?

A) 0.20
B) 0
C) 0.10
D) 0.60
E) 0.30