During 2008-2009, the central bank of a developed country cut interest rates from $5\%$ to $0.5\%$ per year in order to stimulate the economy. What effect would this policy have had on the level of saving and on individuals’ borrowing costs?
- Aamount saved decreased; cost of borrowing decreased
- Bamount saved decreased; cost of borrowing increased
- Camount saved increased; cost of borrowing decreased
- Damount saved increased; cost of borrowing increased