Using the Life-Cycle Theory of Consumption, Explain Each of the Following

Essay

Using the life-cycle theory of consumption, explain each of the following:
(a) Mary and Tom both earn $15,000. Mary spends $30,000 a year and Tom spends $14,000 a year. Mary is working on her MBA degree and Tom, a high school dropout, works as a window washer.
(b) Paul's current income has not changed, but he becomes pessimistic about the economy and worries about losing his job. As a result, he reduces his current consumption.