Purchase Solution

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

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution

Solution Summary

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?

Solution Preview

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, ...

Purchase this Solution


Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.