Which of the following is true regarding the effect expected future income has on saving?
I. As expected future income increases, saving increases.
II. Young people typically save very little.
III. Middle aged people, earning higher incomes, are not very big savers.
A) II and III
B) I and III
C) III only
D) II only

Question

Quizplus · Accepted Answer

Young people typically save very little because they expect their future income to increase, allowing them to save more later.

Which of the Following Is True Regarding the Effect Expected