Suppose that Libby and Peggy both live for four periods denoted by t = 0, 1, 2, 3. In period zero, Libby and Peggy graduate from high school. In each period of t = 1, 2, 3, both Libby and Peggy have a choice to go to college or not. In the labor market, people without a Bachelor degree earn wHS = 10; and people with a Bachelor degree earn wBA = 16. If one attends college, her earnings in that period is zero and she needs to pay tuition and effort costs of C = 1. But from the period following the college-attending period and onward, one would have a Bachelor degree. Libby has a discount factor L = 0.5, and Peggy has a discount factor P = 1. Which of the following statements is correct?

(a) Neither Libby nor Peggy would attend college at all.

(b) Peggy would go to college in period 1 and Libby would not go to college at all.

(c) Both Peggy and Libby would attend college in period 1.

(d) Peggy would go to college in period 3 and Libby would go to college in period 1.

(e) Both Peggy and Libby would attend college in period 2. (f) None of the above.