Draw a Two Period Budget Line Where the Borrow/lending Rate $C _ { 1 } = Y _ { 1 } ; C _ { 2 } = Y _ { 2 }$

Multiple Choice

Draw a two period budget line where the borrow/lending rate of interest,r,allows consumers to choose consumption in each of the two periods.C1 and C2 given their anticipated income on two periods,Y1 and Y2.The one point on the budget line not affected by the interest rate is

A) $C _ { 1 } = Y _ { 1 } ; C _ { 2 } = Y _ { 2 }$
B) the horizontal intercept.
C) the vertical intercept