Suppose You Are Working as an Intern at a Large

question 3

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

---

Definitions:

Health Care Services

Professional services provided to individuals seeking preventive, curative, rehabilitative, or palliative care, often delivered by trained health practitioners.

Out-Of-Pocket Costs

Expenses that are paid directly out of one’s finances and are not reimbursed.

Copayments

A fixed amount paid by a patient each time a medical service is accessed, with the remainder covered by health insurance.

Deductibles

Deductibles are the amount an insurance policyholder must pay out-of-pocket before the insurance coverage begins to pay for covered losses.