A consumer may increase her saving by
A) working more hours and consuming more goods in the present period.
B) working more hours and consuming fewer goods in the present period.
C) working fewer hours and consuming more goods in the present period.
D) working fewer hours and consuming fewer goods in the present period.

Question

Quizplus · Accepted Answer

To increase savings, one needs to consume fewer goods in the present period. Working more hours does not necessarily lead to increased saving if the extra income is spent on additional consumption. Working fewer hours and consuming fewer goods may also lead to increased saving, but the best option is to work more hours and consume fewer goods, as this allows for both increased income and decreased consumption.

A Consumer May Increase Her Saving by