According to the Simplified Life-Cycle Theory of Consumption, a Retired

Multiple Choice

According to the simplified life-cycle theory of consumption, a retired person with zero income from labor would

A) only consume the interest on accumulated wealth
B) consume a fraction of accumulated wealth based upon her/his life expectancy
C) have to decrease consumption sharply in order not to run out of funds too soon
D) expect to be financially supported by her/his children
E) consume more than during her/his working years since she/he does not expect to live much longer