Suppose You Are Working as an Intern at a Large

question 32

Multiple Choice

Suppose you are working as an intern at a large financial firm with an annual salary of $30 000,but you are guaranteed a salary increase to $85 000 at the end of the internship.In general,we can expect that

• A)your current level of saving falls and your supply of financial capital to the economy decreases in anticipation of the higher future income.
• B)your current level of saving rises because there is a positive relationship between household saving and future income.
• C)your current level of saving is certain to be positive.
• D)your current level of saving rises in anticipation of the higher future income.
• E)your current level of saving falls and your supply of financial capital to the economy rises in anticipation of the higher future income.

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Definitions:

Attitudes and Behavior

The relationship between individuals' evaluations of objects, people, or events (attitudes) and their actions (behavior).

Effort Justification

The tendency to assign greater value to outcomes that require a higher level of effort to achieve, often as a means to rationalize the expenditure of resources.

Effort Justification

A phenomenon where individuals assign greater value to outcomes they had to put effort into achieving or obtaining.

Marriage Ceremonies

Rituals or events that celebrate and formalize the union between two individuals within a cultural or legal context.