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.

Question

Quizplus · Accepted Answer

The statement commits the fallacy of composition by assuming that what is good for an individual is also good for the entire economy. While saving more may benefit individuals by increasing their financial security, it may also harm the economy as a whole by reducing consumer spending and potentially causing a recession. Thus, it cannot be assumed that what is good for individuals is always good for the economy as a whole.

Increasing the Share of Your Income That You Save Is