Precautionary Savings Lead Households to Act as If They Are

question 97

Multiple Choice

Precautionary savings lead 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:

Test-retest Reliability

A measure of consistency where a test is given to the same individuals at two different points in time to assess the stability of their scores.

Norms

Established rules or standards of behavior that are expected to be followed within a society or group.

Criterion-related Validity

The extent to which a test predicts or correlates with a specific outcome or behavior it is designed to measure.

Test-retest Reliability

A measure of the consistency of a psychological test or assessment over time, determined by administering the test to the same group of people on two different occasions.