The idea of the life-cycle theory of consumption is that people make ________ consumption plans.
A) lifetime
B) yearly
C) seasonal
D) cyclical

Question

Quizplus · Accepted Answer

The life-cycle theory of consumption proposes that individuals base their consumption decisions on their expected lifetime income rather than short-term fluctuations in income. Therefore, individuals make lifetime consumption plans.

The Idea of the Life-Cycle Theory of Consumption Is That