According to the Consumption-Smoothing Theory,people with a Longer Life Expectancy

question 80

Multiple Choice

According to the consumption-smoothing theory,people with a longer life expectancy:

• A) invest more in their lifetimes than those with shorter life expectancy.
• B) have the same saving rates in their lifetimes as those with shorter life expectancy.
• C) have higher savings rates in their lifetimes than those with shorter life expectancy.
• D) have lower saving rates in their lifetimes than those with shorter life expectancy.

---

Definitions:

Prime Borrowers

Individuals who are considered low-risk by lenders due to their excellent credit history and are thus likely to receive better loan terms.

Government-sponsored Enterprises

Special financial services corporations created by the United States Congress to enhance the flow of credit to specific sectors of the economy, such as housing.

Loanable Funds

Financial resources available for borrowing, often depicted in the market where savers supply funds and borrowers demand funds.

Political Influence

The impact that individuals, groups, or organizations have on political decisions, policies, and the legislative process.