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.

Question

Quizplus · Accepted Answer

Expansion of Social Security in the U.S. has given households more confidence in their financial futures and has decreased the need for saving.

Which of the Following Hypotheses Is a Plausible Explanation for Why