Which of These Illustrates the Paradox of Thrift

Multiple Choice

Which of these illustrates the paradox of thrift?

A) Consumer uncertainty causes people to save less; consumption rises; equilibrium income and production falls; savings decrease because income is lower.
B) Consumer uncertainty causes people to save more; consumption falls; equilibrium income and production falls; savings decrease because income is lower.
C) The government encourages saving by raising interest rates; higher interest rates reduce investment spending, which lowers equilibrium income and causes production to fall; savings decrease because income is lower.
D) As businesses save more, interest rates fall, thus reducing household savings.