If Two Households Have the Same Disposable Income in the Current

question 239

Multiple Choice

If two households have the same disposable income in the current year, the household with the

• A) lower expected future income will consume more today while it has the money.
• B) lower expected future income will spend a larger portion of its current income on consumption today because it will increase its saving in the future.
• C) higher expected future income will consume a larger portion of its current income today.
• D) none of the above

---

Definitions:

Tubular Reabsorption

Involves the movement of water and solutes from the renal tubules back into the bloodstream, a vital process for maintaining fluid and electrolyte balance in the body.

Plasma Proteins

Proteins found in blood plasma, including albumin, globulins, and fibrinogen, that perform various functions such as clotting and defense against infections.

Nephron

The basic structural and functional unit of the kidney, responsible for filtering blood and producing urine.