The Life-Cycle Theory of Consumption Predicts That When a Person

question 409

Multiple Choice

The life-cycle theory of consumption predicts that when a person anticipates a higher income in the future, then that person will

• A)consume more and save less in the current period.
• B)consume less and save more in the current period.
• C)consume less and save less in the current period.
• D)not change the amount of consumption or saving in the current period.

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Definitions:

Matriarchal

A social system or family structure where the female, especially the mother, has the central role of authority and decision-making.

Economic

Relating to the production, consumption, and transfer of wealth within a society or country.

Social Power

The capacity or ability of individuals or groups to control or influence the actions, beliefs, or behaviors of others within a social context.

Paid Labor Force

Refers to the segment of the population that is engaged in compensated work, within formal or informal sectors, contributing to the economy.