The life-cycle model of consumption and saving focuses on
A)the tendency of young consumers to purchase fashionable or trendy goods.
B)the tendency of older people to be very reluctant to spend.
C)the pattern of using the financial system to match saving with consumption needs.
D)the reluctance of most Americans to save for retirement.

Question

Quizplus · Accepted Answer

The life-cycle model of consumption and saving emphasizes how individuals plan their consumption and savings behavior over their lifetime to smooth out their consumption. This involves using the financial system to save during income-earning years and to fund consumption during retirement or periods of lower income.

The Life-Cycle Model of Consumption and Saving Focuses on