What happens to consumption today and in the future, Microeconomics

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What happens to consumption today and in the future

Problem

Analyze the effect of an interest rate decrease on a consumer who is currently a lender. Specifically, answer the following questions. A graph would be useful in your analysis.

a. What happens to consumption today and in the future?

b. Is the consumer better or worse off?

c. What happens to savings?

d. Will the consumer remain a lender?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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