According to the Classical Theory's Long-Run View of the Forces

Multiple Choice

According to the Classical Theory's long-run view of the forces driving interest rates people's consumption and savings habits tend to follow a predictable ____ younger workers borrowing heavily and older workers saving more. The word or phrase that correctly fills in the above blank is:

A) Life cycle
B) Time preference
C) Consumption-savings component
D) Pattern of deferred consumption
E) None of the above