In the life-cycle hypothesis,if a person enters working life with an inherited stock of assets,this
A)raises his consumption during the working years.
B)raises his consumption during the retirement years.
C)raises his consumption in every year.
D)lowers his consumption during the retirement years.
E)lowers his consumption during the working years.

Question

Quizplus · Accepted Answer

The life-cycle hypothesis suggests that individuals plan their consumption and savings behaviour over their life cycle. If a person enters working life with an inherited stock of assets, it provides them with additional resources, allowing them to increase their consumption in every year, not just during working or retirement years.

In the Life-Cycle Hypothesis,if a Person Enters Working Life with an Inherited