According to the life-cycle model, people
A)save when they are young in order to finance education and home purchases in middle age
B)save when they are young in order to finance home purchases during their retirement years
C)save when they are young and pay off debts when they are old
D)borrow when they are young and save when they are older
E)save when they are young and borrow when they are older

Question

Quizplus · Accepted Answer

According to the life-cycle model, individuals typically borrow when they are young to finance education and home purchases, save during their middle years to prepare for retirement, and then dissave or spend their savings during retirement.

According to the Life-Cycle Model, People