A year ago a country reduced the tax rate on all interest income from 20% to 10%. During the year private saving was $500 billion as compared to $400 billion the year before the tax reform. Taxes on interest income fell by $10 billion. Assuming no other changes in income, or government revenues or spending, which of the following is correct?   a. the substitution effect was larger than the income effect; national saving rose     b. the substitution effect was larger than the income effect; national saving fell     c. the income effect was larger than the substitution effect; national saving rose     d. the income effect was larger than the substitution effect; national saving fell

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