O'Roberts Receives a Cash Prize of $3,000 and Is Trying

Multiple Choice

O'Roberts receives a cash prize of $3,000 and is trying to decide how much money to invest at an interest rate of 5 percent and how much to spend now.Consider his intertemporal budget constraint where future interest income is measured on the vertical axis.If the interest rate were 7 percent instead,his budget constraint would

A) rotate inward along the vertical axis.
B) rotate inward along the horizontal axis.
C) rotate outward along the vertical axis.
D) rotate outward along the horizontal axis.