Precautionary Savings Leads Households to Act as If They Are

question 82

Multiple Choice

Precautionary savings leads households to act as if they are ___________ when they are not.

• A)going to last forever
• B)facing declines in the stock market
• C)staring death in the eye
• D)credit constrained
• E)unemployed

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Definitions:

Density-Independent Factor

An environmental factor that affects the size of a population but is not influenced by changes in population density. Compare with density-dependent factor.

Killing Frost

A severe frost event causing significant damage or death to vegetation, effectively ending the growing season for many plants.

Density-Independent Factor

A factor that affects the size of populations regardless of their density, such as weather or natural disasters.

Predation

A biological interaction where a predator organism kills and consumes another organism known as the prey.