Which of the following is not a shortcoming of the life cycle theory?
A) It doesn't provide for money to be left for non-household members.
B) It assumes that expenditures can remain level throughout a person's life.
C) It doesn't account for uncertainty in projecting future incomes and expenses.
D) It doesn't account for the desire by some to have a standard of living that varies by age.
E) All of the above are shortcomings of the life cycle theory.
Correct Answer:
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