If Consumers Correctly Anticipate Their Future Incomes

question 65

Multiple Choice

If consumers correctly anticipate their future incomes:

• A)the saving rate will be high when consumers anticipate a boom.
• B)the saving rate will be low when consumers anticipate a boom.
• C)the saving rate will be low when consumers anticipate a recession.
• D)they will be disappointed because future income can never be correctly forecast.

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Definitions:

Social Inequalities

The existence of unequal opportunities or treatment for different societal groups based on class, race, gender, age, or ethnicity.

Rawls

A philosopher known for his theory of justice which argues for the creation of a society where the least advantaged are as well off as possible.

Principles of Social Justice

Foundational guidelines aimed at ensuring equitable treatment, opportunities, and outcomes for all members of society, often addressing issues of inequality and discrimination.

Rawls

A reference to John Rawls, an influential American political philosopher known for his theories of justice and “the original position” in social contract theory.