1. The diagram below depicts Julia's choice of consumption in periods 1 and 2. She has no income in period 1 and an income of $100 in period 2. Based on this information, which of the following statements is correct?
a. When the interest rate is 10%, if Julia borrows $23 in period 1 then she can consume $70 in period 2.
b. When the interest rate is 10%, the marginal rate of transformation of goods from period 2 to period 1 is 0.1.
c. When the interest rate is 78%, the maximum that Julia can borrow in period 1 is $56.
d. When the interest rate is 78%, a consumption plan of $30 in period 1 and $67 in period 2 is in Julia's feasible set.
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