Multiple Choice
According to the permanent-income and life-cycle hypotheses, if we wish to smooth consumption over our lifetimes we can:
A) get higher-paying jobs.
B) borrow and lend to ourselves over our lifetimes.
C) set consumption proportional to the real interest rate.
D) never change our spending patterns.
E) always save 15 percent of our incomes.
Correct Answer:
Verified
Correct Answer:
Verified
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