Use a two-period life-cycle model to answer the question on the effects of taxation on saving. Consider a tax on the interest revenues with deductible interest payments. Which of the following statements is false

a. Substitution effect implies savers will increase their present consumption.

b. Income effect implies borrowers will decrease their present consumption.

c. Income effect implies savers will decrease their present consumption.

d. Substitution effect implies borrowers will increase their present consumption.