Empirical Evidence Has Suggested That Saving in the United States

Multiple Choice

Empirical evidence has suggested that saving in the United States is

A) extremely sensitive to changes in the real rate of interest because the income effect on consumption of those changes is negligible.
B) extremely insensitive to changes in the real interest rate because the income effect on consumption of those changes dominates the substitution effect.
C) extremely insensitive to changes in the real interest rate because the substitution effect on consumption of those changes dominates the income effect.
D) extremely sensitive to changes in the real interest rate because the substitution effect of those changes on consumption is negligible.
E) none of the above.