Market participants are likely to save a portion of current income if they
A) Place a higher value on future consumption than on current consumption.
B) Place a higher value on current consumption than on future consumption.
C) Believe that banks might fail.
D) Believe that money will lose much of its value in the future.

Question

Quizplus · Accepted Answer

Market participants who place a higher value on future consumption than on current consumption are more likely to save a portion of their current income. They are willing to trade current consumption for future consumption, which requires them to save some of their current income.

Market Participants Are Likely to Save a Portion of Current