Multiple Choice
The life-cycle theory of consumption predicts that when a person anticipates a higher income in the future, then that person will
A) consume more and save less in the current period.
B) consume less and save more in the current period.
C) consume less and save less in the current period.
D) not change the amount of consumption or saving in the current period.
Correct Answer:
Verified
Correct Answer:
Verified
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