Which Statement Reflects a Prediction of the Precautionary Saving Model

question 14

Multiple Choice

Which statement reflects a prediction of the precautionary saving model and the empirical evidence?

• A) Empirical research suggests that expansions of social insurance programs cause savings to increase.
• B) Empirical research suggests that expansions of social insurance programs cause savings to decrease.
• C) The precautionary saving model predicts that an expansion of a social insurance program should cause savings to increase.
• D) The prediction of the precautionary saving model is consistent with empirical evidence.

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Definitions:

Career Centers

Facilities or services provided by educational institutions or organizations to help individuals plan and advance their careers.

Internal Factor

Any factor within an organization that can affect its operations, performance, and strategy, such as culture, employees, or internal processes.

Projected Job Market

An estimation of the future availability of employment opportunities in various sectors.

Location Preferences

Individual or organizational priorities regarding geographical location when making decisions about living, working, or situating businesses.