As a result of habit formation, people spend more today if

Question

Quizplus · Accepted Answer

According to the concept of habit formation, people tend to continue their past behavior and spending patterns. Therefore, if they have spent more in the past, they are likely to continue spending more today as their habits have formed. Conversely, if they have spent less in the past, they are more likely to continue spending less today. Loan or debt history and past income are not directly related to the habit formation of spending.

As a Result of Habit Formation, People Spend More Today