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Consider the Chapter 9 intertemporal model from class: Assume that the real interest rate r decreases. Ceteris paribus, we expect for the lender that current consumption increases If the income effect dominates the substitution effect O If the substitution effect dominates the income effect O In no cases (as a result of both income and substation effects causing c to fall) O In all cases (as a result of both income and substitution effects causing to rise)Consider the Chapter 9 intertemporal model from class: Assume that the real interest rate r decreases. Ceteris paribus, O Borrowers and lenders will both be worse off O Borrowers will be worse off and lenders will be better off O Borrowers will be better off and lenders will be worse off O Borrowers and lenders will both be better offIn the asymmetric information model from Chapter 10, a temporary tax cut financed (paid for) by a future tax increase O Benefits borrowers and lenders equally Benefits neither borrowers nor lenders O Benefits lenders more than borrowers O Benefits borrowers more than lenders