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Adding Uncertainty to Future Consumption Will Tend to Increase Savings U>0U ^ { \prime \prime } > 0

Question 3

Multiple Choice

Adding uncertainty to future consumption will tend to increase savings providing:


A) U>0U ^ { \prime \prime } > 0 .
B) U/Ut>0U ^ { \prime \prime } / U ^ { t } > 0 .
C) U/Ut<0U ^ { \prime \prime } / U ^ { t } < 0 .
D) U>0U ^ { \prime\prime\prime} > 0 .

Correct Answer:

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