According to the life-cycle theory of consumption, people tend to consume less than they ________ during their main working years.
A) earn
B) spend
C) desire
D) invest

Question

Quizplus · Accepted Answer

The life-cycle theory of consumption suggests that people tend to save more during their main working years and therefore consume less than they earn. They do this in order to build up savings to support their consumption during retirement when their income may be lower.

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