Forgoing consumption today for consumption in the future is achieved by a(n)
A) high-growth monetary policy.
B) ban on the production of consumer goods.
C) increase in borrowing.
D) increase in saving.
E) reduction in consumer income.

Question

Quizplus · Accepted Answer

Forgoing consumption today for consumption in the future is achieved by an increase in saving. This means individuals or households may delay spending and direct income towards saving, thus sacrificing present consumption for future consumption. Option A (high-growth monetary policy) is not related to this concept. Option B (ban on the production of consumer goods) is not a viable solution as it would limit consumer choices and result in an inefficient allocation of resources. Option C (increase in borrowing) may increase present consumption at the expense of future consumption as it involves borrowing funds from the future. Option E (reduction in consumer income) is also not a desirable solution as it would reduce overall demand and economic growth.

Forgoing Consumption Today for Consumption in the Future Is Achieved