Assume that consumption when young and consumption when old are both normal goods. The income effect of an increase in the interest rate will result in
A)an increase in saving when young.
B)an increase in saving when old.
C)a decrease in saving when young.
D)a decrease in saving when old.

Question

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The Answer of Assume that consumption when young and consumption when old are both normal goods. The income effect of an increase in the interest rate will result in
A)an increase in saving when young.
B)an increase in saving when old.
C)a decrease in saving when young.
D)a decrease in saving when old.

Assume That Consumption When Young and Consumption When Old Are