An Explanation for the Low Saving Rate in the United

question 85

Multiple Choice

An explanation for the low saving rate in the United States consistent with the life-cycle reason for saving 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.

---

Definitions:

\(a _ { 5 }\)

Typically denotes the fifth term in a sequence or series, depending on the context of its use.

\(\left( - \frac { 1 } { 5 } \right) ^ { n }\)

This represents a mathematical expression indicating the nth power of \(-\frac{1}{5}\).

Arithmetic

A branch of mathematics dealing with numbers and basic operations such as addition, subtraction, multiplication, and division.

Common Difference

The constant difference between successive terms of an arithmetic sequence.