The Life-Cycle Model Was Designed, in Part, to Explain

Multiple Choice

The life-cycle model was designed, in part, to explain

A) why poor nations save more than do rich nations
B) why poor nations save a larger fraction of disposable income than do rich nations
C) why the fraction of total disposable income that is saved seems to remain constant as an economy grows
D) how the saving rate varies over an economy's life-cycle
E) Keynes' contention that too much saving can cause a recession