In the Life Cycle Model, Total Amount Available for Consumption

question 68

Multiple Choice

In the life cycle model, total amount available for consumption in period 1 is:

• A)C₁ = M₁ + (1 + i)/(M₀ - C₀).
• B)C₁ = M₁ + (M₀ - C₀)/(1 + i).
• C)C₁ = M₁ + M₀ - C_0.
• D)C₁ = M₁ + (1 + i)(M₀ - C₀).

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