Modigliani's lifecycle theory of savings proposes that in order to maximize lifetime satisfaction, consumers

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Modigliani's lifecycle theory of savings suggests that consumers should practice consumption smoothing by borrowing and saving in order to maintain a stable level of consumption throughout their lifetime, thereby maximizing their lifetime satisfaction. This means that consumers should borrow when they are young and their income is low, save when they are in their prime earning years, and then use their savings to maintain consumption during their retirement years. Therefore, choice A is the best answer.

Modigliani's Lifecycle Theory of Savings Proposes That in Order to Maximize