Which of the Following Hypotheses Is a Plausible Explanation for Why

question 16

Multiple Choice

Which of the following hypotheses is a plausible explanation for why U.S.households save so little?

• A)Government assistance to the elderly has reduced the need for life-cycling saving.
• B)Most American already own homes and, therefore, have less need for life-cycle saving.
• C)The highly developed financial markets in the U.S.have reduced the need for precautionary saving by Americans.
• D)Government assistance to low-income U.S.households has increased the demonstration effects on spending by the poor.

---

Definitions:

Leisure

Time free from the demands of work or duty, when one can rest, enjoy hobbies, or engage in other personally satisfying activities.

Term Paper

A major assignment written by a student over an academic term, demonstrating their understanding of a topic.

Workbook Problems

Exercises and tasks found in a workbook intended to reinforce learning through practice.

Term Paper

A research paper written by students over an academic term, majorly contributing to their grade.