If Two Households Have the Same Disposable Income in the Current

Multiple Choice

If two households have the same disposable income in the current year, the household with the

A) higher expected future income will consume a larger portion of its current income today.
B) lower expected future income will spend a larger portion of its current income on consumption today because it will increase its saving in the future.
C) lower expected future income will consume more today while it has the money.
D) none of the above