Life-cycle hypothesis (生命周期假说)

Life-cycle hypothesis (生命周期假说 shēngmìng zhōuqī jiǎshuō) refers to the economic theory that individuals seek to maintain a stable level of consumption over their lifetime. People borrow in times of low-income and save when income is high. For instance, an individual may have a student loan when he is young, and pay off the loan during working age while saving for the maintaining of the level of consumption after retiring from work.

Life-cycle hypothesis (生命周期假说 shēngmìng zhōuqī jiǎshuō) word examples:

  1. Product life cycle (产品生命周期 chǎnpǐn shēngmìng zhōuqī).
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