Jaelle Is Planning Ahead for Retirement and Must Decide How

Multiple Choice

Jaelle is planning ahead for retirement and must decide how much to spend and how much to save while she is working in order to have money to spend when she retires.When the income effect dominates the substitution effect,how is an increase in the interest rate likely to influence saving

A) It is likely to decrease saving.
B) It is likely to increase saving.
C) It is likely to increase saving now and decrease saving later.
D) It is likely to decrease saving now and increase saving later.