In the United States, the richest quintile of the population receives 13 times as much income as the poorest quintile. However, the richest quintile only spends 4 times as much as the poorest quintile. Identify the possible reason or reasons for this stark difference between income inequality and consumption inequality.
A. The poverty line does not reflect relative poverty.
B. Individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.
C. The richest quintile has the ability to save a larger percentage of its income.
D. Intergenerational mobility allows children to consume more than their parents.

B. Individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.

C. The richest quintile has the ability to save a larger percentage of its income

Explanation:

Income inequality has to do with the differences in the income of people. It has to do with how incomw I'm an economy are distributed unevenly.

The reason for the difference between income inequality and consumption inequality is that the poor generally spend more of their income on the consumption of goods while the rich save more.

Also, the individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.

Therefore, the correct options are B and C.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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