Which of the following is correct? Can you please explain why this is (and why the other options are incorrect).

72-+ - Consumption later, $ 100 Consumption now, $ The figure depicts Matthew's choice of consumption in two periods: now and later. He has an income of $100 now and no income later. The interest rate is 20%. Based on the figure, which of the following statements is correct? Select one: a. If the interest rate increases then Matthew's feasible frontier steepens, pivoted at B. . b. At A, Matthew makes no savings. C. At B, consumption later is $110. d. At C, consumption now is $28