Which Statement Is TRUE

question 43

Multiple Choice

Which statement is TRUE?

• A) The precautionary saving model,unlike the intertemporal choice model,assumes that all saving is motivated by a desire to self-insure against risk.
• B) The precautionary saving model,unlike the intertemporal choice model,assumes that some saving is motivated by a desire to self-insure against risk.
• C) The precautionary saving model,unlike the intertemporal choice model,assumes that saving is motivated by a desire to smooth consumption.
• D) The intertemporal choice model,unlike the precautionary saving model,assumes that saving is motivated by a desire to smooth consumption.

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Definitions:

Japan

An island country located in East Asia, known for its rich culture, technological advancements, and strong economy.

Improvement

The process of making something better or more effective through changes, upgrades, or enhancements.

Technology

The application of scientific knowledge for practical purposes, especially in industry and the development of innovations.

Shift

In economics, a change in the position of a demand or supply curve on a graph, indicating a change in the quantity demanded or supplied at every price.