In the lifecycle theory of saving,one's consumption path is _____ one's income path.
A) more volatile than
B) less volatile than
C) as volatile as
D) equal to

Question

Quizplus · Accepted Answer

According to the lifecycle theory of saving, individuals tend to save more when their income is high in order to maintain a stable level of consumption throughout their lifetime. As a result, their consumption path is less volatile than their income path, which may be subject to more fluctuations.

In the Lifecycle Theory of Saving,one's Consumption Path Is _____