Explanations for the Low Saving Rate in the United States

question 20

Multiple Choice

Explanations for the low saving rate in the United States consistent with the life-cycle reason for saving include:

• A) relatively limited 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) well developed financial markets making it easy to borrow against home equity.
• D) confidence in future economic prosperity.

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Definitions:

Evolutionary Approach

A theoretical perspective in psychology that examines the role of evolutionary processes (natural selection, adaptation) in shaping human behavior and mental processes.

Intergroup Conflict

A situation where members of different groups experience friction, opposition, or antagonism, often arising from competition for resources, differences in values, or perceived threats.

High LPC

In leadership theory, LPC stands for Least Preferred Coworker, and high LPC leaders are those who describe their least preferred coworker in positive terms, typically focusing on relationships over task completion.

Low LPC

A term from Fiedler's Contingency Model, referring to leaders who are task-oriented and prioritize completing tasks over catering to relationships with team members.