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.


C

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