Which of the Following Is Not True According to the Life

question 15

Multiple Choice

Which of the following is not true according to the life cycle theory?

• A)Borrowing generally takes place early in the household's life,when income is low.
• B)As income rises,people increase their debt rather than save for retirement.
• C)Upon retirement savings are liquidated steadily to maintain their cost of living.
• D)The goal is to "die broke."
• E)All of the above are true according to the life cycle theory.

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Definitions:

Opportunity Cost

The cost of choosing one option over another, typically expressed as the value of the forgone alternative.

Output

The quantity of goods or services produced within a given timeframe.

Thinking At The Margin

The concept involves making decisions based on the additional benefit or cost of the next unit of production or consumption.

Air Travel

The act of moving from one place to another through the atmosphere, typically using airplanes or other aircraft.