Question

As we age, the number and complexity of the financial decisions that we make increases

Answer 1

False

Answer 2

Yes. As we age the complexity and number of decisions increases. This is because more priorities enter our lives like a new family and home. We have to consider the consumption patterns of our family members and investment for private housing creation. Instead of prolonging spending we must save. This is the reason why our MP's fall relative to our MPS's and the curve of the consumption function flattens off eventually. When we keep gaining income in later stages of life we consume at a diminished rate.

Answer 3

MPC's***