According to the Permanent-Income and Life-Cycle Hypotheses, If We Wish

question 51

Multiple Choice

According to the permanent-income and life-cycle hypotheses, if we wish to smooth consumption over our lifetimes we can:

• A) get higher-paying jobs.
• B) borrow and lend to ourselves over our lifetimes.
• C) set consumption proportional to the real interest rate.
• D) never change our spending patterns.
• E) always save 15 percent of our incomes.

---

Definitions:

Parenterally

Administering substances into the body in a manner other than through the digestive tract, such as intravenously or intramuscularly.

Low-molecular-weight Heparin

A category of anticoagulant medications that are derived from standard heparin, designed to prevent and treat blood clots with a lower risk of bleeding complications.

Intradermal Injection

An injection administered into the dermis layer of the skin, typically for allergy testing or tuberculosis screening.

Glargine Insulin

A long-acting insulin analog used to control blood sugar in individuals with diabetes mellitus, providing a steady level of insulin over a 24-hour period.