Which way to shift?

Question

An increase in the buying power of a family's (or a nation's) "wealth" can sometimes actually lead to decrease in its "saving" behavior...that is a _(BLANK)_ shift in its saving supply curve and an increase in its spending behavior. Why?

a. rightward

b. leftward

c. either of the above

d. none of the above

Answer 1

c. either of the above

Person may decide both - to increase savings for future or to increase consumption instead. So real reaction is unknown, but in average people increase savings.