Given the attached information, which of the answers below would be correct?:
a. A would lend, consume 0 today and $105,000 next year
b. G would borrow, consume $112,037 today and 0 next year
c. A would lend, consume 0 today and $111,000 next year
d. G would borrow, consume $105,714 today and 0 next year
e. G would borrow, consume $111,111 today and 0 next year
Extracted text: Suppose that there are two possible investors with entirely different preferences. Think of A as an ant, who wishes to save for the future, and of Gas a grasshopper, who would prefer to spend all his wealth on some ephemeral frolic, taking no heed of tomorrow. Suppose that each has a nest egg of exactly $100,000 in cash. G chooses to spend all of it today, while A prefers to invest it in the financial market. Both have access to a well-functioning, competitive financial market, in which they can borrow and lend at 5% interest rate. Suppose that A and G are offered the opportunity to invest their $100,000 in a new business that a friend is founding. This will produce a one-off surefire payment of $111,000 next year. What would the ant (A) and grasshopper (G) do ? Would they borrow or lend? How much and when would each consume? Select all the correct answers: a. A would lend, consume 0 today and $105,000 next year b. G would borrow, consume $112,037 today and O next year c. A would lend, consume 0 today and $111,000 next year d. G would borrow, consume $105,714 today and 0 next year e. G would borrow, consume $111,111 today and O next year