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.

Answer rating: 100% (QA)

The correct option is C C 10... View the full answer