The Sharp Decline in the Personal Saving Rate of Canadians

question 121

Multiple Choice

The sharp decline in the personal saving rate of Canadians since 1991 may be the result of all of the following EXCEPT

• A) the stock market boom of the 1990s.
• B) major capital gains during the 1990s.
• C) significant increases in the wealth (net worth)of many Canadian households.
• D) higher consumption out of current income.
• E) increases in personal incomes of Canadians.

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Definitions:

Escalation of Commitment

A behavioral pattern where individuals or groups continue to invest in a decision despite new evidence suggesting that the decision was wrong.

Perceived Costs

The assumed disadvantages, losses, or negative outcomes associated with a particular decision or behavior.

Post-decisional Justification

The cognitive process of justifying one's choices after a decision has been made, often to reduce dissonance or regret.

Tacit Knowledge

Knowledge gained through personal experience and context that is difficult to transfer to others through written or verbal communication.