Hello,

I am having hard time to answer the following questions;

QUESTION 12

According to the life-cycle model,

1. richer economies save about the same fraction of disposable income as do poor countries
2. people spend much of their income when young, and borrow to finance retirement when they are older
3. rich countries save a higher fraction of disposable income than do poor countries
4. richer economies save less than do poor economies
5. the saving rate in all nations increases over time