A consumer may increase his or her saving by
A)working more hours and consuming fewer goods in the present period.
B)working more hours and consuming more goods in the present period.
C)working fewer hours and consuming fewer goods in the present period.
D)working fewer hours and consuming more goods in the present period.
E)working more hours and paying less taxes in the present period.

Question

Quizplus · Accepted Answer

Increasing saving requires either increasing income or reducing consumption. Working more hours will increase income, while consuming fewer goods in the present period will reduce consumption. Therefore, option A is the best choice as it includes both increasing income and reducing consumption.

A Consumer May Increase His or Her Saving by