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:

Cochlea

The coiled structure in the inner ear that contains the basilar membrane.

Olfactory Receptor Neurons

Specialized nerve cells located in the nasal cavity that detect chemical substances in the air, leading to the sense of smell.

Olfactory Epithelium

A mucous membrane at the top of the nasal cavity; contains the olfactory receptor neurons that respond to airborne molecules called odorants.

Glomeruli

Sites in the brain’s olfactory bulb where signals from the smell receptors converge.