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With a Rise in the Stock Market,the Simple LCH Model

Question 94

Multiple Choice

With a rise in the stock market,the simple LCH model with no bequests predicts ________ in current consumption.Then when adding to the model bequests due to catastrophic illnesses and expenses that fail to occur,current consumption is ________.


A) a fall,still predicted to fall
B) a fall,predicted to rise
C) no change,predicted to rise
D) a rise,still predicted to rise
E) a rise,predicted to remain unchanged

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