Which of the Following Is True About the Interest Rate

Multiple Choice

Which of the following is true about the interest rate and saving?

A) For a saver,the income and substitution effects of an increase in interest rate work in the same directions.
B) For a borrower,the income and substitution effects of an increase in interest rate work in the same directions.
C) For a saver,the income effect of an increase in the interest rate is negative,but the substitution effect is positive.
D) For a borrower,the income and substitution effects of an increase in interest rate work in the opposite directions.