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 fallacy of composition occurs when one assumes that what is true for an individual or part is also true for the whole group or system. In this case, while saving more might be beneficial for an individual, if everyone saves more and spends less, it could lead to decreased overall demand and potentially harm the economy.

Increasing the Share of Your Income That You Save Is