Which of the following is correct? Can you please explain why this is (and why the other options are incorrect).

A temporary change in income affects the current consumption of credit-constrained households more than it does that of the unconstrained because: Select one: a. If the household cannot borrow, its current consumption is limited by its current income. O b. A credit-constrained household is unlikely to have savings to fall back on. . C. Credit-constrained households are likely to be shortsighted. O d. A credit-constrained household cannot foresee the future