Maggy currently has $15,000 in her bank account and she has two investment opportunities to choose from, investment A and investment B. For investment A she can invest $10,000 in period 0 and get $20,000 in period 1. For investment B she can invest $2000 in period 0 and get $6000 in period 1. Her preferences over consumption in period 0 and 1 are represented by U(x,y)=xy, x represents consumption in period 0 and y represents consumption in period 1.

1. If there is an interest rate of 50% that Maggy can lend and borrow at what investment opportunity is better based on Maggys preferences, A or B?
2. Based on the answer in part A how much will Maggy consume in period 0 and period 1 if the price of the good is $1 in both periods.
3. Based on the answer in part A how much will Maggy consume in period 0 and period 1 if the price in period 0 is $1 and the inflation rate is 20%.
4. Given that the price of consumption in period 0 and 1 is $1 and that the borrowing rate is 50% and the lending rate is 100%, how much will Maggy consume in each period?