The success of the "Save More Tomorrow" program is based on the assumption that consumers:
A) smooth consumption over their life cycles.
B) save a constant fraction of their permanent incomes.
C) require help controlling their desires for instant gratification.
D) save only their transitory incomes.

Question

Quizplus · Accepted Answer

The "Save More Tomorrow" program is successful because it is designed to help consumers overcome their tendencies for immediate gratification by automatically increasing their savings rates over time, particularly as they earn more. This addresses the common behavioral finance issue where individuals struggle to save adequately due to the preference for immediate rewards over future benefits.

The Success of the "Save More Tomorrow" Program Is Based