Q.22 Suppose you have come back to campus (of course you will.) and you have started working out your monthly budget. Suppose you arrived on campus in October (current period) and your parents asked you to work out the budget for the current and next months. Suppose we denote consumption in current and future months as C1 and C2, respectively, and define your utility function as u(C1, C2) = CIC2. You will receive an income of Rs. 100 in each month. The interest rate is 10% for both months. Assume today's price of a good is Rs. 1 per unit and the inflation rate is 5%. Assume that you can either save or borrow at a bank at the given interest rate. How does your optimal consumption in each period will change if the inflation rate rises up to 10%? Note: Only one option is correct! Max. score: 2; Neg. score: 0.5 You will compromise on your future consumption You will compromise on your both periods' consumption Your consumption will remain the same in both periods. You will compromise on your current consumption