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According to the life-cycle hypothesis, what is the typical

According to the life-cycle hypothesis, what is the typical pattern of saving for an individual over his or her lifetime? What impact does this behavior have on an individual's lifetime consumption pattern? What impact does the behavior have on the saving rate in the overall economy?

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According to the life-cycle hypothesis, what is the typical pattern of saving for an individual over his or her lifetime?

-- According to the life-cycle hypothesis, the pattern of saving is directly related to the stage of life that the person is going through. Younger people generally have no savings, because their needs outweigh their income. Typical expenses include education, the desire for personal goods, and the need for housing as a young adult. As the person matures into young adulthood, and begins their professional career after college, savings remain minimal because the individual is purchasing large assets, including their first home, cars, ...

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According to the life-cycle hypothesis, what is the typical pattern of saving for an individual over his or her lifetime? What impact does this behavior have on an individual's lifetime consumption pattern? What impact does the behavior have on the saving rate in the overall economy?

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