The Life-Cycle Hypothesis Predicts What Consequence of Aging of the Overall

question 87

Multiple Choice

The life-cycle hypothesis predicts what consequence of aging of the overall population? [That is,an increase in T,relative to R & L.]

• A)a decrease in the marginal propensity to consume out of wealth
• B)an increase in aggregate saving
• C)a decrease in the marginal propensity to consume out of income
• D)an increase in aggregate wealth

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Definitions:

Purchases Variance

A financial metric used to measure the difference between the actual cost of purchased materials and the planned or standard cost.

Materials Price Variance

The difference between the actual amount paid for materials and the expected (or standard) cost of those materials, multiplied by the quantity of materials purchased.

Direct Material Standards

Standard costs set for the quantity and price of materials required for a manufacturing process.

Purchases Variance

A measurement of the difference between the actual cost of materials and the expected, or standard, cost.