When people expect their income to be lower in the future,they will be:
A)more inclined to save.
B)less inclined to save.
C)unaffected in their present choices.
D)People only react and change their savings decisions based on recent history,and generally work on a lag.

Question

Quizplus · Accepted Answer

When people expect their income to be lower in the future, they tend to become more cautious about their spending and more inclined to save. This behavior is driven by the desire to build a buffer against future financial challenges and maintain financial stability in the face of uncertainty. Therefore, option A is the correct choice.

When People Expect Their Income to Be Lower in the Future,they