Within a two-period intertemporal choice setting, a consumer chooses to be a saver at an initial market rate of interest. Which of the following best describes what happens when the rate of interest...

Extracted text: Within a two-period intertemporal choice setting, a consumer chooses to be a saver at an initial market rate of interest. Which of the following best describes what happens when the rate of interest increases? the income and substitution effects on current consumption will always move in the same direction the income and substitution effects on current consumption will always move in opposite directions the income effect on current consumption will never be larger than the substitution effect А. В. C. D. none of the above