According to the consumption-smoothing theory,people with a longer life expectancy:
A) invest more in their lifetimes than those with shorter life expectancy.
B) have the same saving rates in their lifetimes as those with shorter life expectancy.
C) have higher savings rates in their lifetimes than those with shorter life expectancy.
D) have lower saving rates in their lifetimes than those with shorter life expectancy.

Question

Quizplus · Accepted Answer

The consumption-smoothing theory suggests that individuals aim to smooth their consumption over their lifetime. Therefore, individuals with a longer life expectancy tend to have higher savings rates in their lifetimes than those with shorter life expectancy. This allows them to maintain a consistent level of consumption throughout their lives, even during times of income fluctuation or unexpected expenses.

According to the Consumption-Smoothing Theory,people with a Longer Life Expectancy