In Irving Fisher's two-period model, if the consumer is initially a saver and the interest rate increases, and first-period consumption decreases, then we can conclude that the income effect:
A)was greater than the substitution
B)effect. was less than the substitution effect.
C)exactly offset the substitution effect.
D)and the substitution effect both decreased consumption.

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The Answer of In Irving Fisher's two-period model, if the consumer is initially a saver and the interest rate increases, and first-period consumption decreases, then we can conclude that the income effect:
A)was greater than the substitution
B)effect. was less than the substitution effect.
C)exactly offset the substitution effect.
D)and the substitution effect both decreased consumption.

In Irving Fisher's Two-Period Model, If the Consumer Is Initially