In the face of reduced interest rates, one financial columnist gave the following advice: To compensate for

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In the face of reduced interest rates, one financial columnist gave the following advice: “To compensate for such modest returns, aim to save even more every month” [Clements, 2003]. Use the life cycle model to evaluate whether a rational person would follow this advice. If so, what does it imply about the shape of the individual’s supply curve of saving?
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Public Finance

ISBN: 978-0078021688

10th edition

Authors: Harvey Rosen, Ted Gayer

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