The Fact That 80% of the Assets Accumulated During a Lifetime

question 22

Multiple Choice

The fact that 80% of the assets accumulated during a lifetime are bequeathed to heirs in the United States suggests that

• A)the appropriate time horizon for consumption theory is the lifetime of the earner.
• B)the appropriate time horizon for consumption theory is intergenerational.
• C)the Barro-Ricardo equivalence theorem is correct.
• D)it is true that higher taxes increase savings.