If the Interest Rate on Student Loans _______, Students Will

Multiple Choice

If the interest rate on student loans _______, students will ________.

A) rises from 6 percent to 12 percent; increase their saving in order to pay back the loan sooner
B) rises from 6 percent to 12 percent; increase their consumption before it becomes too expensive
C) falls from 6 percent to 1 percent; increase their saving in order to pay back the loan sooner
D) falls from 6 percent to 1 percent; not change their saving but will change their investment
E) None of the above answers are correct.