Which of the Following Is TRUE Regarding the Effect Expected

question 9

Multiple Choice

Which of the following is TRUE regarding the effect expected future income has on saving?
I. As expected future income increases, saving increases.
II. Young people typically save very little.
III. Middle aged people, earning higher incomes, are not very big savers.

• A) I and III
• B) II only
• C) III only
• D) II and III

---

Definitions:

Shivering

An involuntary response to cold, generating heat through rapid rhythmic contractions of muscles.

Muscle Contraction

The process by which muscle fibers generate force and shorten or maintain tension in response to stimuli, facilitating movement and support.

Warm Blood

Refers to endothermic animals that regulate their body temperature through internal metabolic processes.

Metabolism

The set of life-sustaining chemical reactions in organisms that allow for the growth, reproduction, maintenance of health, and response to environments, typically involving energy release and consumption.