Refer to the Following Figure When Answering
Figure $u \left( c _ { 1 } \right) + u \left( c _ { 2 } \right)$

Multiple Choice

Refer to the following figure when answering
Figure 16.2: Consumption Function
-According to the consumption function in Figure 16.2:

A) people's lifetime utilities are equal to $u \left( c _ { 1 } \right) + u \left( c _ { 2 } \right)$
B) people prefer to consume the average over their lifetimes rather than $c _ { 1 }$ and $c _ { 2 }$
C) the utility associated with consuming the average over both periods is less than the average of $$u \left( c _ { 1 } \right)$$ and $u \left( c _ { 2 } \right)$
D) $u ( \bar { c } ) < u \left( c _ { 1 } \right)$
E) the marginal propensity to consume is greater than one