Increasing the Share of Your Income That You Save Is

question 43

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:

Deductive Inferences

The process of reasoning from one or more statements (premises) to reach a logically certain conclusion.

Inductive Inferences

The logical process of deriving general principles from specific observations or instances.

Eighth Grade

An educational level typically attended by students aged 13-14, marking the end of middle school in many education systems.

Working Memory Span

The capacity of working memory, indicating the amount of information one can hold and manipulate in mind for short periods.