When household savings increase, consumption tends to fall, leading to a decrease in aggregate demand. This is primarily because households are setting aside more money for savings instead of spending on goods and services immediately. When individuals and families choose to save more, they reduce their current spending, which directly affects consumption levels. Since consumption is a major component of aggregate demand, a decline in consumption results in a decrease in aggregate demand overall. Thus, the correct answer is: d fall and aggregate demand to decrease.
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