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:

Pavlov's Experiment

A landmark study in behavioral psychology that demonstrated how dogs could be conditioned to salivate at the sound of a bell, associating it with food.

Closed Geometric Figures

Shapes whose edges are completely connected, enclosing a space.

Reinforcers

Any stimuli, objects, or events that increase the likelihood of a behavior being repeated when they are applied.

Unpleasant Stimuli

External or internal factors that are perceivable and can cause discomfort or negativity.