The Relation Between Money and Happiness Is That

question 32

Multiple Choice

The relation between money and happiness is that

• A) there is no relation between money and happiness.
• B) people who are richer than their neighbors are happier but absolute levels of money do not predict happiness.
• C) money does predict happiness consistently across all levels of personal income.
• D) money is positively related to happiness in poor countries but negatively related to happiness in rich countries.
• E) money is positively related to happiness at very low levels of wealth but this relationship is weaker in developed countries which have higher levels of wealth.

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Definitions:

Capital Flight

The rapid movement of large sums of money or capital out of a country due to economic or political instability, affecting the country's financial health.

Microlending

The provision of small loans to entrepreneurs and small businesses lacking access to banking and related services.

Human Capital

The knowledge and skills that make a person productive.

Aggregate Demand

Aggregate demand represents the total demand for all goods and services within a country's economy at a given overall price level and in a given time period.