If a Consumer Views a Unit of Consumption in Period

Multiple Choice

If a consumer views a unit of consumption in period 1 as a perfect substitute (one for one) for a unit of consumption in period 2 and if the real interest rate is positive, the consumer will

A) consume only in period 1.
B) consume only in period 2.
C) consume equal amounts in each period.
D) consume more in period 1 than in period 2 if income elasticity exceeds 1, otherwise consume more in period 2 than in period 1.
E) equalize expenditures but not consumption in the two periods.