4. [6 points] 1 point per question; covers chapter 4 only. a. A fall in current income causes the lifetime resources to . As a result, current consumption , future consumption and private savings A fall in current taxes causes the lifetime resources to . As a result, current consumption , future consumption and private savings The - refers to a desire to have a relatively smooth pattern of consumption over time. A rise in interest rate (r) (increases/decreases pick one) the opportunity cost of current consumption. Consider a consumer that is a borrower. A rise in interest rate (r) (increases/decreases) cutrent consumption according to the SE, and (increases/dectreases) current consumption according to the IE. S curve shifts outwards if there is a fall in (provide an example as related to the lecture material)