Which of the following hypotheses is a plausible explanation for why U.S. households save so little?
A. Government assistance to low-income U.S. households has increased the demonstration effects on spending by the poor.
B. Most American already own homes and, therefore, have less need for life-cycle saving.
C. The highly developed financial markets in the U.S. have reduced the need for precautionary saving by Americans.
D. Government assistance to the elderly has reduced the need for life-cycling saving.
Answer: D
You might also like to view...
The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource. The market equilibrium with no government intervention is ________
A) 0 tons per week B) 400 tons per week C) 300 tons per week D) None of the above answers is correct.
Over the long run, stock prices have
A. generally fallen. B. generally stayed roughly constant. C. generally risen. D. shown no identifiable pattern of change.
A "liberal" would most likely argue in favor of
a. tax increases when fiscal stimulus is necessary, and spending cuts when fiscal restraint is necessary. b. tax cuts when fiscal restraint is necessary, and spending cuts when fiscal stimulus is necessary. c. tax cuts when fiscal stimulus is necessary, and spending cuts when fiscal restraint is necessary. d. spending increases when fiscal expansion is necessary, and tax increases when fiscal restraint is necessary.
If the market exchange rate of yen per dollar rises, this means the
A. dollar has weakened, but the yen has not changed. B. dollar has strengthened, but the yen has not changed. C. yen has strengthened, and the dollar has weakened. D. dollar has strengthened, and the yen has weakened.