Increasing the Share of Your Income That You Save Is

question 85

Multiple Choice

Increasing the share of your income that you save is good for you. Therefore, it would be good for the whole economy if everyone saved more. This exemplifies the

• A)post hoc fallacy.
• B)fallacy of composition.
• C)use of loaded terminology.
• D)confusion between correlation and causation.

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Definitions:

Sum-Of-The-Years'-Digits Method

A depreciation technique that results in a more accelerated write-off of an asset over its useful life, by applying a decreasing fraction to its depreciable cost.

Repairs

Expenditures that restore an asset to its previous operating condition or maintain the asset in its current condition, without significantly enhancing its value.

Maintenance Costs

The expenses incurred to keep an asset in usable condition or restore it to its original condition without enhancing its value.

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.