An implication of the life cycle theory is that:

Name: An implication of the life cycle theory is that:
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Question

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The life cycle theory assumes that households plan for their future needs and assets, and make decisions based on their expected future income and savings. This implies that their actions extend beyond their current resources and present pleasures. The theory does not suggest that utility can be measured in money terms, nor does it state that spending decisions are solely based on current income.

An Implication of the Life Cycle Theory Is That