Households Will Choose to Save More If

question 113

Multiple Choice

Households will choose to save more if

• A)expected future income decreases.
• B)current disposable income increases.
• C)current disposable income decreases.
• D)Both A and B are correct.
• E)Both A and C are correct.

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Definitions:

Residual Value

The estimated value of an asset at the end of its useful life.

Internally Generated Goodwill

The increase in value of a business due to factors like reputation, brand, customer base, and relationships that are developed internally over time and not acquired or purchased.

Intangible Asset

An asset that lacks physical substance and usually represents legal rights or competitive advantages (e.g., patents, trademarks, copyrights).

Office Building

A structure designed for the operations of businesses, providing workspaces and offices for use by employees and management.