The diagram below depicts Marcos choice of consumptions in periods 1 and 2. He has $100 worth of grain in period 1 and no income in period 2. Marco has two choices. In scheme 1, he can sell the grain that he does not consume and lend the money at 10%. In scheme 2, he can invest the grain that he does not consume (e.g., planting as seed) for a return of 50%. Which of the following statement is correct? Is the given statement True or False. Give explanation .

1. Marco can do better than consumption choice B by investing all of his grain and borrowing against his period 2 output.

2. Marco can do better than consumption choice B by investing all of his grain and consuming the output in period 2.