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According to Modigliani's Life-Cycle Hypothesis, If a Consumer Wants Equal

Question 109

Multiple Choice

According to Modigliani's life-cycle hypothesis, if a consumer wants equal consumption in every year and the interest rate is zero, then the marginal propensity to consume out of wealth ______ as years ______ decrease.


A) increases; of life remaining
B) decreases; of life remaining
C) increases; until retirement
D) decreases; until retirement

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