Which of the Following Hypotheses Is a Plausible Explanation for Why

question 16

Multiple Choice

Which of the following hypotheses is a plausible explanation for why U.S.households save so little?

• A)Government assistance to the elderly has reduced the need for life-cycling saving.
• B)Most American already own homes and, therefore, have less need for life-cycle saving.
• C)The highly developed financial markets in the U.S.have reduced the need for precautionary saving by Americans.
• D)Government assistance to low-income U.S.households has increased the demonstration effects on spending by the poor.

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Definitions:

Moving Slower

A decrease in the speed at which physical movements or processes are conducted.

Stationary

Remaining in the same place, position, or state, not moving or changing.

Motion Parallax

A visual indicator where objects nearer to the viewer move quicker across the field of view compared to those that are more distant.

Aerial Perspective

A visual perception cue based on the understanding that objects farther away appear less defined, lighter, and bluer than objects that are closer, contributing to depth perception.