An Explanation for the Low Saving Rate in the United

question 103

Multiple Choice

An explanation for the low saving rate in the United States consistent with the demonstration effect includes:

• A)relatively generous government assistance for the elderly and large down payments required for home purchases.
• B)households spending beyond their means to keep up with community standards.
• C)highly-developed financial systems making it easy to buy homes with down payments under 15 percent.
• D)large and persistent capital gains.

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Definitions:

Diameter

A straight line passing through the center of a circle or sphere and connecting two points on the circumference or surface.

Involuntary Loss

An instance of losing something, such as control or assets, without the intention or ability to prevent it.

Dribbling

Uncontrolled leakage of urine from the bladder.

Urinary System

A group of organs in the body, including the kidneys, ureters, bladder, and urethra, responsible for the production, storage, and elimination of urine.