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.

Understand the factors contributing to poor posture and how it affects health.

Distinguish between different types of stretching and their applications.

Recognize conditions and factors that affect joint health and flexibility.

Understand the influence of biological sex on flexibility.

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Definitions:

Portfolio Managers

Professionals responsible for making investment decisions and overseeing the management of investment portfolios on behalf of clients.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

Selection Contribution

The return added to a portfolio through the successful selection of securities, differentiating from the return that would result from holding a passive benchmark portfolio.

Total Excess

The amount by which returns on an investment exceed the benchmark or risk-free return over a specified period.