One Argument That Is Made Concerning the Low Rate of Saving

question 7

Multiple Choice

One argument that is made concerning the low rate of saving in the United States is that

• A) although savings is at almost historically low levels,the savings rate conceals the "hidden savings" from people concealing money in various places in their houses.
• B) although savings is at almost historically low levels,the savings rate conceals the "hidden savings" from people's equity in their homes.
• C) the next generation has a lower time preference than previous ones.
• D) the next generation is just plain lazy.
• E) the marginal benefit of saving has fallen relative to the marginal benefit of spending.

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Definitions:

Controlling Biases

Strategies or practices aimed at recognizing and mitigating the influence of personal biases in decision making and evaluations.

Self-esteem

A person's personal judgment of their own value, including their self-view and feelings like victory, sadness, self-respect, and embarrassment.

Cognitively Busy

A state of mind characterized by being engaged in high levels of mental activity, reducing capacity for processing additional information.

Cognitive Control

The ability of individuals to regulate their thoughts, emotions, and actions through mental processes, enabling goal-directed behavior.