The Next Questions Refer to the Following

question 61

Multiple Choice

The next questions refer to the following.
An individual is endowed with $100 of income in period 1, and will receive an income of 121 in period 2. The interest rate is 10%, and there are only 2 periods.
-The maximum first period consumption consistent with the intertemporal budget constraint is

• A) 100
• B) 110
• C) 121
• D) 210
• E) 221