Uncertainty about the future is likely to
A) decrease current saving.
B) have no impact on current saving.
C) increase current saving.
D) either increase or decrease current saving.

Question

Quizplus · Accepted Answer

When there is uncertainty about the future, individuals tend to increase their current savings as a way of protecting themselves against unexpected events. This is known as precautionary saving. Therefore, the most likely impact of uncertainty about the future is an increase in current saving.

Uncertainty About the Future Is Likely to