Multiple Choice
According to Modigliani's life-cycle hypothesis, if a consumer wants equal consumption in every year, and the interest rate is zero, there are 40 years until retirement, and 60 years of life remaining, then the marginal propensity to consume out of income equals:
A) 0.016.
B) 0.40.
C) 0.60.
D) 0.67.
Correct Answer:
Verified
Correct Answer:
Verified
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