According to the life-cycle hypothesis,
A) consumption during retirement decreases at a greater rate than disposable income.
B) consumption during working years increases at a greater rate than disposable income.
C) saving during retirement decreases at a greater rate than disposable income.
D) consumption and saving are smoothed out over a lifetime so they both change at the same rate as disposable income.

Question

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The Answer of According to the life-cycle hypothesis,
A) consumption during retirement decreases at a greater rate than disposable income.
B) consumption during working years increases at a greater rate than disposable income.
C) saving during retirement decreases at a greater rate than disposable income.
D) consumption and saving are smoothed out over a lifetime so they both change at the same rate as disposable income.

According to the Life-Cycle Hypothesis