In the life-cycle hypothesis,people are assumed to have a consumption pattern that leads them to dissave
A)at no point in their life.
B)in the working years up to retirement.
C)in their retirement years.
D)in every year of their life.

Question

Quizplus · Accepted Answer

According to the life-cycle hypothesis, people tend to consume more in their working years and save for their retirement, which means they dissave in their retirement years. Therefore, option C is the correct choice. A, B, and D are incorrect because they do not accurately reflect the consumption pattern assumed by the life-cycle hypothesis.

In the Life-Cycle Hypothesis,people Are Assumed to Have a Consumption