Help with economics h.w. thank you.?

It's probably better to have higher liquidity when you are younger, because your average propensity to save is lower, and your average rate to buy is higher. Therefore you will need more cash, as there are less funds avaliable to service your needs. However, it is good when you are getting to your middle age, after repaying loans/morgaes etc. to start investing in the future (or even earlier) this would probably be easier, aas you would have a higher income, whichh can then be diversified into longer term investments with a higher return