According to the life-cycle hypothesis,if a person wants consumption to be constant over her lifetime,she will smooth consumption by initially ________ over her lifetime.
A) saving, then dissaving, then borrowing
B) borrowing, then saving, then dissaving
C) dissaving, then borrowing, then saving
D) saving, then borrowing, then dissaving

Question

Quizplus · Accepted Answer

According to the life-cycle hypothesis, individuals aim to smooth consumption over their lifetime. They typically borrow when young (before income peaks), save during their working years, and dissave during retirement.

According to the Life-Cycle Hypothesis,if a Person Wants Consumption to Be