The Life-Cycle Hypothesis Predicts What Consequence of Aging of the Overall

question 87

Multiple Choice

The life-cycle hypothesis predicts what consequence of aging of the overall population? [That is,an increase in T,relative to R & L.]

• A)a decrease in the marginal propensity to consume out of wealth
• B)an increase in aggregate saving
• C)a decrease in the marginal propensity to consume out of income
• D)an increase in aggregate wealth

---

Definitions:

Entrepreneur

An individual who creates, organizes, and operates a business or businesses, taking on financial risk to do so.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes.

Limited Incomes

Economic condition where individuals or households have restricted earnings, impacting their spending capabilities and living standards.

Households

The individuals or group of people living together in the same dwelling and functioning as a single decision-making economic unit, typically sharing income and expenses.