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.In deciding to save rather than spend,people effectively reallocate their spending over time.That is,people save now in order to spend more in the future.

Question

Quizplus · Accepted Answer

If individuals place a higher value on future consumption than current consumption, they are more likely to save a portion of their current income in order to have more money to spend in the future.

Market Participants Are Likely to Save a Portion of Current