Within the AD/AS Model, If Consumers Increase Their Savings and Cut

Multiple Choice

Within the AD/AS model, if consumers increase their savings and cut back on their spending, the

A) natural rate of unemployment will increase.
B) real interest rate will decrease and, thereby, cushion the reduction in consumption spending.
C) real interest rate will increase because of the higher rate of saving.
D) long-run aggregate supply will decrease to restore equilibrium.