A consumer may increase his or 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.
E) working more hours and paying less taxes in the present period.

Question

Quizplus · Accepted Answer

Increasing savings requires consuming fewer goods in the present period and allocating more income towards savings. Working more hours can increase income, but if all the extra income is spent on additional consumption, savings will not increase. Working fewer hours and consuming fewer goods will allow for a larger portion of income to be saved.

A Consumer May Increase His or Her Saving by