Which of the Following Hypotheses Is a Plausible Explanation for Why

Multiple Choice

Which of the following hypotheses is a plausible explanation for why U.S. households save so little?

A) Government assistance to the elderly has reduced the need for life-cycling saving.
B) Most Americans already own homes and, therefore, have less need for life-cycle saving.
C) The highly developed financial markets in the U.S. have reduced the need for precautionary saving by Americans.
D) Government assistance to low-income U.S. households has increased the demonstration effects on spending by the poor.