Suppose That an Individual Receives an Unexpected, One-Time Windfall of

Multiple Choice

Suppose that an individual receives an unexpected, one-time windfall of
$1,000. To determine its effect on future consumption,

A) preferences about the desirability of both steady consumption and the desired size of the bequest are required.
B) it would be necessary to know the desired size of the bequest, but the desirability of steady consumption is immaterial.
C) it would be necessary to know the value ascribed to steady consumption, but the desired size of the bequest is immaterial.
D) neither the desirability of steady consumption nor the desired size of the bequest is material because $1,000 is too small a sum to be affected by either.
E) none of the above.