Modigliani's Lifecycle Theory of Savings Proposes That in Order to Maximize

question 2

Multiple Choice

Modigliani's lifecycle theory of savings proposes that in order to maximize lifetime satisfaction, consumers

• A) practice consumption smoothing by borrowing and saving.
• B) borrow equal amounts throughout the life cycle.
• C) save equal amounts throughout their life cycle.
• D) consume what they earn each year.

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Definitions:

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American playwright, screenwriter, and film director, known for his contributions to the comedy genre in the golden era of Hollywood.

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