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An Individual with No Investment Opportunities Has Income of $15,000

Question 19

Multiple Choice

An individual with no investment opportunities has income of $15,000 in period 0 and income of $10,000 in period 1. If the interest rate is 7%, which of the following points is on the individual's consumption possibility line?


A) $3,000 in period 0 and $21,215 in period 1.
B) $4,000 in period 0 and $21,116 in period 1.
C) $10,000 in period 0 and $15,350 in period 1.
D) $16,000 in period 0 and $9,000 in period.
E) $18,800 in period 0 and $6,200 in period 1.

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