According to the life-cycle income hypothesis, if the retirement age increases but life expectancy decreases:   a. consumption increases and savings increase   b. consumption increases and savings might increase or decrease   c. consumption decreases and savings decrease   d. consumption decreases and savings might increase or decrease   e. consumption might increase or decrease and savings decrease

Exploring Economics
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ISBN:9781544336329
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Chapter23: The Aggregate Expenditure Model
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According to the life-cycle income hypothesis, if the retirement age increases but life expectancy decreases:

 

a. consumption increases and savings increase

 

b. consumption increases and savings might increase or decrease

 

c. consumption decreases and savings decrease

 

d. consumption decreases and savings might increase or decrease

 

e. consumption might increase or decrease and savings decrease

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