If C₀ and C₁ are Both Normal Goods, for a Person

Multiple Choice

If C₀ and C₁ are both normal goods, for a person who saves in the initial equilibrium, when i rises:

A) C₀ and C₁ both increase.
B) C₁ declines.
C) C₁ increases.
D) C₀ and C1 both decline.