Patience Has a Utility Function U(c₁, C₂)= C^1/2₁ + 0

Multiple Choice

Patience has a utility function U(c₁, c₂) = c^1/2₁ + 0.80c^1/2₂, where c₁ is her consumption in period 1 and c₂ is her consumption in period 2.Her income in period 1 is twice 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
B) 0.25
C) 0.13
D) 0.50
E) 0.38