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.

---

Definitions:

Potential Buyers

Individuals or entities that have shown interest in purchasing a product or service, but have not yet made a purchase.

Rustbucket

A term referring to an old, deteriorating vehicle, especially one suffering from rust and neglect.

Used Cars

Vehicles that have had one or more retail owners before, often sold through various outlets including franchise and independent car dealers.

Productivity

A measure of the efficiency with which goods and services are produced, often quantified as output per unit of input.