Please, show step by step solution.

Jame will live for exactly two periods. His utility function is U(c1, c2) = c1c2, where c1 is consumption in period 1 and c2 is consumption in period 2. He will have no income in period 2. His income in period 1 is $40,000. If the interest rate rises from 10 to 14%:

a. his savings will increase by 4% and his consumption in period 2 will increase.

b. his consumption in both periods will increase.

c. his consumption in both periods will decrease.

d. his savings will not change but his consumption in period 2 will increase by $800.

e. his consumption in period 1 will decrease by 14% and his consumption in period 2 will increase.