Which of the following statements is false?
A) Two individuals who have the same current income but different permanent incomes are likely to make very similar savings decisions.
B) An individual with a relatively low current income but a high permanent income might save little or nothing now, expecting to save for retirement and for bequests later.
C) A person with a relatively low income now with no expectation of higher income later might try to save some now to provide for retirement or bequests later.
D) A decision to save a certain amount determines how much will be available for future consumption.

Question

Quizplus · Accepted Answer

Individuals with the same current income but different permanent incomes are likely to make different savings decisions, as permanent income influences expectations about future income and consumption needs.

Which of the Following Statements Is False