The substitution effect of a decrease in real interest rates is to cause a consumer to
(a) increase future consumption and decrease current consumption.
(b) decrease future consumption and increase current consumption.
(c) increase current consumption and increase saving.
(d) decrease current consumption and increase saving.
Answer: B
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.