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 statement is committing the fallacy of composition by assuming that what is true for an individual is true for the whole economy. While it may be good for an individual to save more, if everyone in the economy did the same, it could lead to a decrease in consumer spending and potentially harm the economy as a whole.

Increasing the Share of Your Income That You Save Is