The Demonstration Effect Suggests That People Will Save Less When

question 41

Multiple Choice

The demonstration effect suggests that people will save less when they

• A)base their spending decisions (and consequently their saving decisions)on spending decisions of others who spend more than they do.
• B)base their saving decisions on their projections of income and spending needs over their lifetime.
• C)recognize that the real interest rate has increased.
• D)control their spending in order to save more when the real interest rate increases.

---

Definitions:

Needs To Feel

The emotional requirements or desires individuals seek to fulfill through their interactions, work, or environment.

Sense Of Community

This concept relates to the feelings of belonging, support, and identification that individuals experience within a community.

Management Trainee Program

A structured development program designed to train individuals for managerial roles within an organization.

Project Manager

A professional responsible for planning, executing, and closing projects, ensuring objectives are met on time and within budget.