Suppose Reta is planning for retirement in a two-period world. In the first period, Reta is young and earns $1 million and in the second period, Reta is old and retired and earns nothing. The interest rate is initially 10 percent, but then it falls to 7 percent. After the interest rate falls, the O a. substitution effect will induce Reta to consume less when she is young. b. income effect will induce Reta to consume more when she is young. O c. change in interest rates generate a substitution effect but not an income effect. O d. substitution effect will induce Reta to consume more when she is young