Author Question: According to the life-cycle hypothesis, if a person wants consumption to be constant over her ... (Read 89 times)

sam.t96 · **on:** Jun 30, 2018

According to the life-cycle hypothesis, if a person wants consumption to be constant over her lifetime, she will smooth consumption by initially ________ over her lifetime.

A) saving, then dissaving, then borrowing
B) borrowing, then saving, then dissaving
C) dissaving, then borrowing, then saving
D) saving; then borrowing; then dissaving

Question 2

When economists, policymakers, or journalists refer to the Fed's balance sheet, they are typically referring to the:

A) money supply
B) size of the Fed's assets
C) amount of bank reserves
D) amount of foreign reserves