Refer to the Following Figure When Answering the Following Questions

question 106

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 16.4: Personal Saving Rate: 1990-2010
-Consider Figure 16.4. A possible cause for the change in the saving rate after about 2007 is:

• A) precautionary saving.
• B) consumption smoothing.
• C) a falling discount factor.
• D) rising marginal utility of consumption.
• E) the aging of the baby boomers.

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Definitions:

Purchase Discounts

Reductions in the price of goods purchased, usually as a reward for early payment to the supplier.

Freight-In

The cost associated with getting inventory to a business, usually included in the cost of goods sold.

GAAP

The collection of standard accounting practices widely recognized for financial reporting is called Generally Accepted Accounting Principles.

Perpetual System

A system for managing inventory accounts that instantly logs inventory sales or acquisitions using computerized point-of-sale systems and software for enterprise asset management.