If households expect an increase in their future incomes, they will save
A) and consume less today
B) more and consume less today
C) less and consume more today
D) and consume more today

Question

Quizplus · Accepted Answer

If households expect higher future incomes, they are likely to save less and consume more today, anticipating that they will have more income to save in the future.

If Households Expect an Increase in Their Future Incomes, They