In Irving Fisher's Two-Period Consumption Model, If Y₁ = 15,000

Multiple Choice

In Irving Fisher's two-period consumption model, if Y₁ = 15,000, Y₂ = 20,000, the interest rate r is 0.50 (50 percent) , and there is a constraint on borrowing that is binding, then C₂ equals:

A) 20,000.
B) 22,500.
C) 35,000.
D) 42,500.