Consider a single consumer with utility function U(c₁,c₂)=In c₁+Inc₂ where c₁ represents the dollar value of consumption in time period t, t=1,2. The consumer has exogenous consumption income Y where Y1=Y2=100. The market rate of interest is 10%. The consumer also has the possibility of investing in an all-or-nothing project as follows

Invest $10 in period 1

Return $12 in period 2

a) Depict graphically all consumption possibilities with and without this investment.

不知道怎么画图啊？大家帮帮忙

b) Would the consumer undertake this investment project?应该做，20%>10%，right?

c) How much would the consumer borrow or lend?完全不知道