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.

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Definitions:

Receptor Cells

Specialized cells that respond to specific types of energy (e.g., light, sound) and convert it into electrical signals for the nervous system.

Retina

A thin layer of tissue located on the inside back wall of the eye, containing cells that are sensitive to light and trigger nerve impulses that are sent to the brain via the optic nerve.

Dim Light

A level of illumination that is subdued or less than bright, often creating a mood of relaxation or serenity, and can influence the perception of environments.

Rods

Rods are photoreceptor cells in the retina that are highly sensitive to light and enable vision in low-light conditions.