In the lifecycle theory of savings,the sequence of behavior is as follows:
A) borrow,dissave,save.
B) borrow,save,dissave.
C) save,borrow,dissave.
D) save,dissave,borrow.

Question

Quizplus · Accepted Answer

In the lifecycle theory of savings, individuals are expected to borrow in their early years (when income is low), save during their middle years (when income is higher), and then dissave (spend their savings) during retirement. This sequence reflects the anticipated pattern of income and consumption over a person's life.

In the Lifecycle Theory of Savings,the Sequence of Behavior Is