In a Debate in the Economics Department,Andrew Makes the Point

Multiple Choice

In a debate in the Economics Department,Andrew makes the point: "Since I can save more by cutting back on expenditures on goods and services,everyone in Canada should be able to save more if all Canadians cut back on expenditures at the same time." The logic used by Andrew constitutes an example of the fallacy of composition because it mistakenly ignores the possibility that

A) the reduced total expenditure on goods and services may cause a recession.
B) the reduced total expenditure on goods and services may cause inflation.
C) the reduced total expenditure on goods and services may cause a recession and,consequently,a reduction in national saving.
D) the reduced total expenditure on goods and services may cause a relative price change.
E) the reduced total expenditure on goods and services may cause a productivity slowdown.