According to the life-cycle hypothesis, if a person wants consumption to be constant over her lifetime, she will smooth consumption by initially ________ over her lifetime
A) saving, then dissaving, then borrowing
B) borrowing, then saving, then dissaving
C) dissaving, then borrowing, then saving
D) saving; then borrowing; then dissaving
B
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Refer to Figure 1A.1. Assume that the graph in this figure represents the demand and supply curves for orange juice. An increase in the price of apple juice, which is a substitute for orange juice, would be represented by a shift from
A) Demand 1 to Demand 2. B) Demand 2 to Demand 1. C) Supply 1 to Supply 2. D) Supply 2 to Supply 1.
Suppose a bank has a desired reserve requirement ratio of 12 percent. If someone deposits $1,000 in the bank
A) immediately after the deposit, excess reserves increase by $880. B) the bank can make loans of $1,000. C) the bank's desired reserves rise by $1,000. D) Both answers B and C are correct.
If firms in a monopolistically competitive industry are making economic profits: a. firms will likely be subject to regulation. b. barriers to entry will be strengthened
c. new firms will enter the market. d. some firms must exit the market.
Which of the following is an accurate statement about people’s choices?
a. They choose, knowing for sure which choice is best. b. They choose, expecting the best outcome from their choice. c. They choose, doubting their choice will have a good outcome. d. They choose, having no idea what choice is a good one.