If households believe they live longer, what is effect on saving?

Question

If households come to believe that they will live longer, what will be the most likely effect on household saving, other things equal?

A-Household saving will rise.

B-Household saving will fall.

C-Household saving will be unchanged.

D- It will depend whether households are initially net savers or net borrowers.

Answer 1

haha,, ur doing macroeconomics at usyd arent u ??

Answer 2

A-Household saving will rise.

To cover higher sum of future expenses.