Refer to the above model.If ∂₀ 0,_____. A)uneducated people have higher savings than those who are educated B)educated people have higher savings than those who are not educated C)individuals with lower income have higher savings D)individual with lower income have higher savings

Question

Refer to the above model.If ∂₀ > 0,_____. A)uneducated people have higher savings than those who are educated B)educated people have higher savings than those who are not educated C)individuals with lower income have higher savings D)individual with lower income have higher savings

Quizplus · Accepted Answer

If ∂₀ > 0, it means that an increase in education level (U1) leads to an increase in savings (S1) given a constant level of wealth (B0). Therefore, educated people (higher U1) have higher savings than those who are not educated.

Refer to the Above Model.If ∂0 > 0,_____

Refer to the Above Model.If ∂₀ > 0,_____