According to the life-cycle theory of consumption, people tend to ________ during their main working years.
A) save
B) dissave
C) consume more than they earn
D) accumulate negative wealth

Question

Quizplus · Accepted Answer

The life-cycle theory of consumption suggests that people plan their consumption and savings behaviour over their lifetime. They aim to smooth out their consumption in the best possible manner, saving during their working years and dissaving (or spending accumulated savings) during retirement.

According to the Life-Cycle Theory of Consumption, People Tend to ________