If Two Households Have the Same Disposable Income in the Current

question 23

Multiple Choice

If two households have the same disposable income in the current year, the household with the

• A) higher expected future income will consume a larger portion of its current income today.
• B) lower expected future income will consume more today while it has the money.
• C) lower expected future income will spend a larger portion of its current income on consumption today because it will increase its saving in the future.
• D) none of the above

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Definitions:

Resource-Holding Potential

The ability of an individual or group to control valuable resources against competitors, often affecting mating success and survival.

Competitive Ability

The capability of an organism to obtain resources, mates, or territory in the face of competition from other individuals or species.

Wet Forest

A forest ecosystem characterized by high humidity and regular precipitation, leading to a dense understory and rich biodiversity.

Ideal Free Distribution

A theory in ecology predicting how animals distribute themselves among resources to maximize their fitness.