Which of the following is an example of the bequest motive for saving?
A. Pat puts $400 per month in his 401(k) retirement account.
B. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die.
C. Jordan sets aside $200 per month in case she has to pay for a new roof for her house.
D. Chris keeps $15,000 in a money market account to pay expenses in case he loses his job.
Answer: B
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If a country's production possibilities curve gets more bowed out over time, it is an indication that
A) technological change has taken place. B) society is learning to use its resources more efficiently. C) the quantity of labor and capital have increased. D) resources have become more highly specialized.
Which of the following macroeconomic variables is acyclical?
A. Money supply B. Real interest rates C. Consumption D. Unemployment