An individual's consumption and saving behaviour during a given year, as a result of a planning process that considers his or her lifetime economic situations, is known as the
A)consumption model.
B)life-cycle model.
C)leisure-income model.
D)lifetime model.

Question

Quizplus · Accepted Answer

The life-cycle model is a theory of consumption and saving behavior that suggests that individuals plan their consumption and saving over their lifetime, taking into account their expected future income and expenses.

An Individual's Consumption and Saving Behaviour During a Given Year