Which of the Following Is a Characteristic of the Life

question 16

Multiple Choice

Which of the following is a characteristic of the life cycle theory of savings?

• A)It assumes that utility cannot be measured in money terms.
• B)It says that our spending decisions are based on the amount of income we earn currently.
• C)Is says that before we establish our lifetime resources,we try to maintain a constant level of expenditures throughout our life cycle.
• D)All of the above.
• E)None of the above.

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Definitions:

Particular Frame

A specific perspective or point of view adopted in evaluating or analyzing a situation, which can influence perceptions and outcomes.

Secondary Concerns

Issues or considerations that are not of primary importance but may still influence outcomes or decisions.

Primary Issues

The main or most important topics or problems to be discussed or dealt with in a negotiation or discussion.

Cognitive Bias

A systematic error in thinking that affects decisions and judgments, resulting from one's own personal experiences, beliefs, or preferences.