... panel (a), Sam responds to the higher interest rate by con-suming less when young. In panel (b), Sam responds by consuming more whenyoung.Sam’s saving, of course, is his income when young ... minus the amount he con-sumes when young. In panel (a), consumption when young falls when the interestrate rises, so saving must rise. In panel (b), Sam consumes more when young, sosaving ... change in consumption thatresults when a price change movesthe consumer along a givenindifference curve to a point with anew marginal rate of substitution484 PART SEVEN ADVANCED TOPICNow...