If you overhear a group of people talking about their plans to save for their retirement and one of them says that it causes them to save more because, as they reason it, "if there wasn't Social Security I could never retire; there is, so I will and I need to save for that." You would attribute this to the
A)slovenly effect.
B)bequest effect.
C)induced retirement effect.
D)asset substitution effect.

Question

Quizplus · Accepted Answer

This statement reflects the induced retirement effect, where the existence of a retirement benefit (like Social Security) motivates individuals to save more for their retirement, as it makes the prospect of retiring more tangible and achievable.

If You Overhear a Group of People Talking About Their