Which of the Following Is TRUE About the Lifecycle Theory

question 102

Multiple Choice

Which of the following is TRUE about the lifecycle theory of savings?

• A) People tend to save during the early years of their lifetimes,dissave during their prime working years,and borrow during their retirement years.
• B) People tend to borrow during the early years of their lifetimes,invest during their prime working years,and save during their retirement years.
• C) People tend to borrow during the early years of their lifetimes,save during their prime working years,and dissave during their retirement years.
• D) People tend to save during the early years of their lifetimes,borrow during their prime working years,and invest during their retirement years.

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Definitions:

Prototype

An early model or release of a product used to test a concept or process or to act as a thing to be replicated or learned from.

Insulin Injection

A medical procedure where insulin is injected into the body to help manage blood sugar levels in people with diabetes.

Customer Tastes

Preferences or inclinations of consumers, which influence their buying behaviors and choice of products or services.

Historical Data

Previously recorded information that is used to understand past events or trends, often used in analysis or research to predict future outcomes.