Empirical Studies of Franco Modigliani's Life-Cycle Hypothesis Show That

Multiple Choice

Empirical studies of Franco Modigliani's life-cycle hypothesis show that:

A) most elderly individuals try to exhaust all their savings by the time they die.
B) the elderly do not seem to run down their wealth in old age, as a simple version of the theory would predict.
C) elderly individuals generally do not want to leave bequests for their children.
D) precautionary saving is not an important saving motive for the elderly.