The fundamental lesson of the life-cycle and permanent-income hypotheses is that individuals smooth their consumption patterns over their lifetimes.

Question

Quizplus · Accepted Answer

The life-cycle and permanent-income hypotheses both suggest that individuals aim to smooth out their consumption patterns over their lifetimes, taking into account expected changes in income and expenses over time.

The Fundamental Lesson of the Life-Cycle and Permanent-Income Hypotheses Is