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worty [1.4K]
3 years ago
7

(Life-Cycle Hypothesis) According to the life-cycle hypothesis, what is the typical pattern of saving and spending for an indivi

dual over his or her lifetime? What impact does this pattern have on the saving rate in the overall economy?
Business
1 answer:
hammer [34]3 years ago
7 0

Answer & Explanation:

Modiglani's Life cycle Hypothesis depicts spending & consumption pattern of people, in order to stabilise / or smoothen their consumprtion. The theory has following phases :

  • Early (Non Working) Age, Low Income stage : Borrowings are done, to cover up for lack of income that yields desirable stable consumption level.
  • Youth, Earning (Working) Age : Savings are done, through surplus of income level over desirable stable consumption level.
  • Old, Post retirement (Non working age) : Dissavings are done, funds from previous savings are used to cover for lack of income that yields desirable stable consumption level.

Implication rate for entire economy saving rate : It implies that economy's savings rate is high, if more population comprises of middle aged working population.

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When the money market is drawn with the value of money on the vertical axis, an increase in the money supply shifts the money supply curve to the

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1 year ago
How do top nike executives direct and motivate members of the organization? How has leadership evolved nike’s mission and core v
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1 year ago
American Hardware, a national hardware chain, is considering purchasing a smaller chain, Eastern Hardware. American's analysts p
Travka [436]

Answer:

The maximum price per share that American should offer is $18.13 per share

Explanation:

The computation of the maximum price per share is shown below:

= Present value ÷ Number of outstanding shares

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= $18.13 per share

For computing the maximum price, we used the present value and the discount rate is irrelevant in the computation part. Hence, it is ignored plus the current price is also ignored.

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Dovator [93]

Answer:

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Heavy users also have an impact on light users because they can market the goods to light users whether indirectly or directly when they use so much of a business's goods and services.

It is therefore very important that the business knows of these heavy users so that they can focus marketing strategies on them as well as to offer them incentives that will keep them satisfied and coming back for more because if they don't act and they lose their heavy users, their revenues will see a significant drop.

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3 years ago
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Deffense [45]

Answer:

reducing procurement costs.

Explanation:

Online business to business (B2B) marketing enables companies to enhance their performance by reducing procurement costs.

An online business to business (B2B) can be defined as a type of market where a business sells goods and services to another business online.

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3 years ago
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