Explanations for the high saving rate in China consistent with the life-cycle reason for saving include:
A)China's social safety net provides most people little in the way of retirement income.
B)lifetime employment.
C)the desire to leave resources to children who provide support and attention to parents in their old age.
D)low unemployment rates in Japan.

Question

Quizplus · Accepted Answer

China's limited "social safety net"-its version of Social Security, Medicare, and other social insurance schemes-provides most people little in the way of retirement income or protection against health problems. That means that young households have to save both for their own retirement-life-cycle saving-and for unexpected expenses such as health-related ones-precautionary saving.

Explanations for the High Saving Rate in China Consistent with the Life-Cycle