A Higher Real Interest Rate Today Makes Current Consumption

Multiple Choice

A higher real interest rate today makes current consumption

A) more expensive relative to future consumption because the return on savings is lowered.
B) more expensive relative to future consumption because the return on savings is increased.
C) less expensive relative to future consumption because the return on savings is increased.
D) less expensive relative to future consumption because the return on savings is lowered.
E) just as expensive as future consumption because the return on saving is uncertain.