Which Is the Most Accurate Statement

question 94

Multiple Choice

Which is the most accurate statement?

• A)Most Americans save for the same reason.
• B)Poor people,on the average,save a higher percentage of their income than the rich.
• C)The permanent income hypothesis has had a virtually perfect record in predicting consumer behavior.
• D)The tremendous expansion of bank credit cards,installment credit and consumer loans has contributed substantially to the consumer binge of the last dozen years.

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Definitions:

Bowed Out

A description usually of production possibilities frontier that shows increasing opportunity costs.

Command Economy

An economic system in which the government or central authority makes all decisions about the production and distribution of goods and services.

Centralized

A system or organization where decision-making and administrative processes are concentrated at a single point or center.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured as the percentage increase in real GDP.