The path of consumption over a lifetime is likely to be ________ the path of income.
A) much more stable than
B) much less stable than
C) about the same as
D) completely unrelated to

Question

Quizplus · Accepted Answer

The path of consumption over a lifetime is generally much more stable than the path of income because individuals tend to smooth their consumption by saving during high-income periods and borrowing or drawing down savings during low-income periods.

The Path of Consumption Over a Lifetime Is Likely to Be