Multiple Choice
According to the life-cycle theory of consumption, an individual's
A) mpc out of wealth is fairly large
B) mpc out of labor income increases with increasing age, until it becomes zero at retirement age
C) mpc out of transitory income is fairly small
D) level of consumption will decrease if his/her retirement age is increased
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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