If people leave bequests primarily because they are uncertain about the timing of their deaths,
A)the marginal propensity to consume out of a temporary change in income would tend to be higher than in the simple version of the LCH.
B)unrealized capital gains from higher housing prices will probably lead to a higher consumption-to-income ratio than in the simple version of the LCH.
C)increases in wealth from the stock market would be consumed over a longer time horizon than in the simple version of the LCH.
D)A and C are both correct.

Question

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The Answer of If people leave bequests primarily because they are uncertain about the timing of their deaths,
A)the marginal propensity to consume out of a temporary change in income would tend to be higher than in the simple version of the LCH.
B)unrealized capital gains from higher housing prices will probably lead to a higher consumption-to-income ratio than in the simple version of the LCH.
C)increases in wealth from the stock market would be consumed over a longer time horizon than in the simple version of the LCH.
D)A and C are both correct.

If People Leave Bequests Primarily Because They Are Uncertain About