The Main Reason That Wealth Inequality Persists Across Generations Is

question 84

Multiple Choice

The main reason that wealth inequality persists across generations is that ________.

• A)people tend to marry within their own socioeconomic class
• B)intergenerational transfers can only increase wealth inequality
• C)there are differences between households in their degree of specialization
• D)rich families have equal wealth over the life cycle
• E)all of the above

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Definitions:

Earnings Activities

Earnings activities refer to business operations and ventures that generate income or profit for a company.

Partial Equity Method

An accounting technique used for investments, where an investor recognizes income from the investee to the extent of dividends received and adjustments for changes in the investee's net assets.