The Life-Cycle Model of Consumption and Saving Indicates That _____

question 37

Multiple Choice

The life-cycle model of consumption and saving indicates that _____

• A) young people pay off debt.
• B) middle-agers draw down their saving.
• C) older people dissave.
• D) net savings over a lifetime are usually little or nothing.
• E) net savings over a lifetime are usually substantial.

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Definitions:

Household Organization

Describes the structure and management of a household or family unit, including roles, responsibilities, and relationships among members.

Industrial Societies

Societies characterized by a reliance on mechanized labor and an emphasis on manufacturing and industrial production.

Nuclear Family

A group consisting of one or two parents and dependent offspring, which may include a stepparent, stepsiblings, and adopted children. Until recently, this term referred only to the father, mother, and child(ren) unit.

Colonized

The action or process of settling among and establishing control over the indigenous people of an area.