Question 1
Households are said to have positive wealth when
◦ the market value of their assets is zero.
◦ the value of their assets is greater than the debts they owe.
◦ the value of their assets is equal to the debts they owe.
◦ the value of their assets is less than the debts they owe.
Question 2
Generally speaking, wealth
◦ starts out negative, turns positive, then approaches zero near the end of life.
◦ starts out positive, turns negative, then turns positive again near the end of life.
◦ starts out zero, turns positive, then turns negative near the end of life.
◦ starts out negative, approaches zero, then turns negative again near the end of life.