According to one survey 76 percent of Americans said they were not saving enough for retirement. This example of inconsistency over time
A)is rational behavior.
B)likely occurs because saving requires a sacrifice in the present for a reward in the distant future.
C)likely occurs because Americans don't care about retirement.
D)definitely would not happen if Americans earned a greater return on their investments.

Question

Quizplus · Accepted Answer

It is rational behavior that people tend to prioritize their present needs over uncertain future needs. Saving for retirement requires sacrificing current consumption for future consumption, which can be difficult for many people to do. This inconsistency over time is a common phenomenon in behavioral economics and can be explained by present bias and time inconsistency.

According to One Survey 76 Percent of Americans Said They