According to Franco Modigliani's life-cycle hypothesis, the time of life at which an individual has the largest amount of wealth is at:
A) birth.
B) death.
C) retirement.
D) his or her parents' death.

Question

Quizplus · Accepted Answer

According to the life-cycle hypothesis, individuals accumulate wealth throughout their working life and then use that wealth to support themselves in retirement when they are no longer receiving income from work. Therefore, retirement is the time of life at which an individual is likely to have the largest amount of wealth.

According to Franco Modigliani's Life-Cycle Hypothesis, the Time of Life