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PEA 2026Question 30mcqModerate

A two-period consumer maximises U(C1,C2)=logC1+11+ρlogC2,ρ>0,U(C_1, C_2) = \log C_1 + \tfrac{1}{1+\rho}\log C_2, \qquad \rho > 0, subject to C1+S=wC_1 + S = w and C2=(1+r)SC_2 = (1+r) S, with w,r>0w, r > 0. If ww rises by 1%1\% and rr falls by 1%1\%, then SS