Though we haven't explicitly covered taxes, suppose that there is a tax on savings so that the real return to a bond is no longer just (1H) but instead (1-t)[1+r). (Note this tax applies no matter whether the individual is a saver or borrower). If taxes were to increase how would our agents in the consumption savings model respond? For this question you may assume the agent in question is neither a saver or borrower so there is only a substitution effect. (a) Increase Consumption Today (b) Increase Consumption Tomorrow (c) Increase Bond Holdings ((1) Decrease Bond Holdings