An Explanation for the Low Saving Rate in the United

question 73

Multiple Choice

An explanation for the low saving rate in the United States consistent with the demonstration effect includes:

• A)relatively generous government assistance for the elderly and large down payments required for home purchases.
• B)households spending beyond their means to keep up with community standards.
• C)well-developed financial markets making it easy to borrow against home equity.
• D)large and persistent capital gains.

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The process of influencing oneself to establish the self-direction and self-motivation needed to perform or achieve one's objectives.

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