Which of the Below Statements About Consumptions and Savings Is

question 42

Multiple Choice

Which of the below statements about consumptions and savings is FALSE?

• A) A chief influence on the saving decision is the individual's marginal rate of time preference, which is the willingness to trade some consumption now for more future consumption.
• B) Generally, higher current income means the person will save more, although people with the same income may have different time preferences.
• C) A variable affecting savings is the reward for saving, or the rate of interest on loans that savers make with their unconsumed income.
• D) The total savings (or the total supply of loans) available at any time is the sum of everybody's savings and a negative function of the interest rate.