Increased Saving Today Means

question 189

Multiple Choice

Increased saving today means

• A)more consumption today and in the future
• B)less consumption today and in the future
• C)more consumption today and less in the future
• D)less consumption today and more in the future
• E)more income today, but the net effect of increased income on the balance between consumption and saving cannot be determined in advance

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Definitions:

Working Backward

A problem-solving strategy that starts with the outcome and works in reverse to find the solution.

Sub-goals

Intermediate objectives or milestones set as steps toward achieving a larger goal, helping to make complex tasks more manageable.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering problem-solving and creativity.

Mental Set

A psychological tendency to approach problems in a certain way due to past experiences and what has worked previously.