Everything else constant, a higher interest rate will tend:
A) to increase consumption spending as people face increasing debt
B) to reduce consumption spending as people have a greater incentive to save
C) not to change consumption spending because consumption is only affected by income
D) not to change total consumption spending, but to change who does the spending
E) to reduce both consumption spending and saving as people face increased debt
Answer: A) to increase consumption spending as people face increasing debt
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