Multiple Choice
An explanation for the low saving rate in the United States consistent with the demonstration effect includes:
A) relatively generous government assistance for the elderly and large down payments required for home purchases.
B) households spending beyond their means to keep up with community standards.
C) highly-developed financial systems making it easy to buy homes with down payments under 15 percent.
D) large and persistent capital gains.
Correct Answer:
Verified
Correct Answer:
Verified
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