Which of the Following Statements Is False

question 52

Multiple Choice

Which of the following statements is false?

• A) Two individuals who have the same current income but different permanent incomes are likely to make very similar savings decisions.
• B) An individual with a relatively low current income but a high permanent income might save little or nothing now, expecting to save for retirement and for bequests later.
• C) A person with a relatively low income now with no expectation of higher income later might try to save some now to provide for retirement or bequests later.
• D) A decision to save a certain amount determines how much will be available for future consumption.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease typically about an imminent event or something with an uncertain outcome.

Cognitive Therapy

A type of psychotherapy that treats mental health conditions by addressing negative patterns of thought.

Decatastrophize

A cognitive-behavioral technique aimed at reducing anxiety by altering catastrophic thinking into more balanced and realistic assessments of situations.

Cognitive Therapy

A form of psychotherapy that emphasizes the importance of thought patterns in the development and maintenance of psychological disorders; it aims to change negative thought patterns to improve emotional state and behavior.