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One hypothesis for explaining the socio-economic disparities in health Is known as the "direct income hypothesis" This theory states that health disparities arise because higher income individuals have more resources available to invest in health In the context of the Grossman model everything else held constant, we would expect For the higher-income individual to have less productive time available. X For the higher Income Individual to have a lusher rate of health depreciation the PPF for the higher income individual to be shifted outward compared to the lower income individual The Marginal efficiency of capital curve to be shifted inward (to the left) for the higher Income individual