Which of the Following Statements Is False

question 131

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 money 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.