Final answer:
PACED is an acronym used in risk management for a structured decision-making process that helps evaluate economic decisions. It provides a way to systematically assess choices and their outcomes which can be used to manage and save money effectively.
Step-by-step explanation:
The acronym PACED stands for a decision-making process that is particularly helpful in risk management. PACED stands for defining the Problem, listing the Alternatives, identifying the Criteria for evaluation, Evaluating the alternatives, and making a Decision. This model is useful for economic decisions because it provides a structured approach to assess different choices and their potential outcomes. When tallying your spending, the PACED model can help you determine whether you were surprised by the total and what changes you may need to make to save more money and manage your funds more effectively.