If People Leave Bequests Primarily Because They Are Uncertain About

question 47

Multiple Choice

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.

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Definitions:

Affiliative Humor

A style of humor used to enhance social relationships by focusing on light-hearted, inclusive jokes and anecdotes.

Self-defeating Humor

A style of humor in which individuals make themselves the target of jokes, potentially lowering their own self-esteem.

Self-enhancing Humor

A style of humor used to boost or maintain one's self-esteem.

Aggressive Humor

A style of humor that involves making jokes or comments at the expense of others, often incorporating elements of ridicule or sarcasm.