Answer:
According to Say's law, in a money economy a reduction in consumption spending causes a Rightward shift of the saving curve and therefore a Decline in the interest rate.
Explanation:
The reason is that the supply of money in the market will grow because people will be saving more and start investing them. This results a rightwards shift of saving curve which is moving away from pivot point (0,0). This excess supply of money will lower the interest rate because greater the supply of the money the lower the interest rate.
