Answer Happy

A household that is a net saver owes less money to its creditors
than it has saved or has lent out to other entities. If there is a
decrease in interest rates in an economy, then what will happen to
the consumption of the households in that economy that are net
savers? O Both the income and substitution effects will drive their
current consumption down. O Both the income and substitution
effects will drive their current consumption higher. O The income
effect will drive their current consumption up, but the
substitution effect will drive it down. O The income effect will
drive their current consumption down, but the substitution effect
will drive it up. The income effect will drive their current
consumption up and the substitution effect will keep it
unchanged.