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When an increase in interest rate leads to a decline in savings, it implies that:?

A. individuals substitute future consumption for present consumption.

B. income effect of a higher interest rate is greater than substitution effect..

C. savings and interest rate patterns cannot be determined in terms of the income and substitution effect.

Project Finance Accounting Cash Flow Forecasting Financial Systems Feasibility Studies
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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/07/08
Upvote (2) Views (9) Followers (3) Answers (3) Report Question
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Anoop Mohan
by Anoop Mohan , Finance Manager , Arafa plywoods

Option B.................... .

Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

OPTION B==============================

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

C----------------------------------------------------

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