According to the life-cycle theory of consumption, people tend to ________ during their early and later years.
A) dissave
B) save
C) consume less than they earn
D) save less than they invest

Question

Quizplus · Accepted Answer

According to the life-cycle theory of consumption, people tend to dissave during their early and later years because they consume more than they earn. In their early years, they may take on debt to finance education and then repay it later. In their later years, they may draw down their assets to support themselves in retirement.

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