It has been pointed out that compared to changes in wealth, especially wealth as measured by current stock prices, fluctuations in a family's income tend to have a far bigger impact on household spending because:
A) A major portion of U.S. equity holdings lie in tax-sheltered retirement accounts that are not available for immediate spending
B) The tendency is to save wealth gains
C) Only a minority of people hold significant quantities of stock in most countries
D) A and B only
E) A, B and C
Correct Answer:
Verified
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