If Uncertainty About Future Income and Future Needs Is Incorporated

Multiple Choice

If uncertainty about future income and future needs is incorporated into the life-cycle theory of consumption, then

A) buffer-stock saving can no longer be explained
B) the fact that consumption is interest sensitive can be explained
C) the fact that people rarely use up their lifetime saving can be explained
D) the fact that saving is interest sensitive can be explained
E) it is significantly different from the permanent-income theory