Which of the following is a characteristic of the life cycle theory of savings? It assumes that utility cannot be measured in money terms. Is says that before we establish our lifetime resources, we try to maintain a constant level of expenditures throughout our life cycle. None of the alternatives is correct. It says that our spending decisions are based on the amount of income we earn currently. All the alternatives are correct.

Which of the following is a characteristic of the life cycle theory of savings? It assumes that utility cannot be measured in money terms. Is says that before we establish our lifetime resources, we try to maintain a constant level of expenditures throughout our life cycle. None of the alternatives is correct. It says that our spending decisions are based on the amount of income we earn currently. All the alternatives are correct