Answer the multiple choice question

Suppose a consumer receives 0 income in the current period and income y in the future period. There are no taxes. The consumer can borrow in the current period the real interestrate r. In the future period, the consumer could decide to default on the debt acquired in the current period. If the consumer chooses to default, he o she consumes his or her income y minus a default cost v. Here, v represents legal penalties, or loss of access to credit markets in the future that extends beyond the "future" period. a. Under what conditions will the consume choose to default, and under what conditions will he or she not defaut? The consumer will choose A. to default when v>1+rb and will choose not to default when v1+rb, where b is the quantity that the consumer borrows in the current period B. to detault when b>1+rv and will choose not to defaut whon b1+rv, Where b is the quantity that the consumer borrows in the current period. C. to detaut when b