Increased savings today means:?

Question

a. more consumption today and tomorow

b. less consumption today and tomorow

c. more consumption today less tomorow

d. less consumption today and more tomorow

e. more income today, but the net effect that increased income will have on the composition of consumption vs. saving cannot be determined in advance

Answer 1

For an exact answer is required make some suppositions.

.- what about the savings tomorrow?

.- what about the increase?.

with a no savings tomorrow and a fixed income in both period the answer is d.

with out some suppositions then the answer is e.

Answer 2

d. less consumption today and more tomorow

Answer 3

The answer is D.