Not all households are net borrowers. For households who are net lenders (i.e. net savers), an increase in interest rates will: 0 decrease current consumption if the income effect is greater than the substitution effect. 0 decrease future consumption if the substitution effect is greater than the income effect. 0 increase current consumption if the substitution effect is greater than the income effect. 0 decrease current consumption if the substitution effect is greater than the income effect. O decrease future consumption if the income effect is greater than the substitution effect