The path of consumption over a lifetime is likely to be much more stable than the path of income.

Question

Quizplus · Accepted Answer

This statement is true because, over a lifetime, most people tend to maintain a similar level of consumption, adjusting only as necessary based on changes in income or circumstances. In contrast, income can vary greatly over time due to factors such as job changes, promotions or demotions, economic downturns, and more.

The Path of Consumption Over a Lifetime Is Likely to Be