The typical economic life cycle illustrates how people tend to

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The typical economic life cycle shows that people borrow more when they are younger because they are establishing themselves in their careers and may have more expenses such as buying a house or starting a family. As they age, they tend to save more as they may have more stable income and are preparing for retirement. While earning income prior to retirement is commonly referred to as peak earnings, it may vary based on the individual's profession or career path. The concept of adjusting consumption based on changes in transitory income is not directly related to the economic life cycle.

The Typical Economic Life Cycle Illustrates How People Tend to