Final answer:
Withdrawals made after election of Lifetime Income can affect future Lifetime Income Withdrawals. If the withdrawals increase the income for the individual's lifetime, their marginal propensity to consume would be 1.0, meaning they would spend all of the additional income. If the withdrawals do not increase the income for the lifetime, the marginal propensity to consume would be less than 1.0, indicating they would spend only a fraction of the additional income.
Step-by-step explanation:
Withdrawals made after election of Lifetime Income can affect future Lifetime Income Withdrawals. When making withdrawals, it is important to consider the concept of marginal propensity to consume, which refers to the fraction of additional income that is spent. If the withdrawals made after the election increase the income for the individual's lifetime, their marginal propensity to consume would be 1.0. This means that they would spend all of the additional income received. On the other hand, if the withdrawals do not increase the income for the lifetime, the marginal propensity to consume would be less than 1.0, indicating that they would spend only a fraction of the additional income.