Increased Present Saving

question 143

Multiple Choice

Increased present saving

• A) comes at the expense of reduced current investment.
• B) comes at the expense of reduced current consumption.
• C) can only occur if the government increases the amount of money in circulation.
• D) is only possible if the economy is experiencing positive growth in real GDP.

---

Definitions:

Asymmetric Information

Asymmetric information occurs when one party in a transaction has more or better information than the other, leading to an imbalance in the decision-making process.

Unsuspecting Buyer

A consumer who purchases goods or services without being aware of all the relevant information, often leading to disadvantageous situations.

Auto Transmission

A type of vehicle transmission that automatically changes gear ratios as the vehicle moves, without input from the driver.

Adverse Selection

A situation in insurance and other markets where buyers and sellers have different information, leading those more likely to produce negative outcomes to participate more actively.