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,U(C1,C2)=logC1+1+ρ1logC2,ρ>0, subject to C1+S=wC_1 + S = wC1+S=w and C2=(1+r)SC_2 = (1+r) SC2=(1+r)S, with w,r>0w, r > 0w,r>0. If www rises by 1%1\%1% and rrr falls by 1%1\%1%, then SSS
Increases by more than 1%1\%1%
Increases by 1%1\%1%
Decreases by 1%1\%1%
Decreases by more than 1%1\%1%