According to the life-cycle theory of consumption, people tend to dissave during their ________ years.
A) main working
B) early
C) later
D) both B and C

Question

Quizplus · Accepted Answer

The life-cycle theory of consumption suggests that people plan their consumption and savings over their lifetime, aiming to smooth out their consumption. They tend to dissave (spend more than their income) during their early years (due to lower earnings) and later years (after retirement), relying on savings accumulated during their main working years.

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