More often than not, it depends on the person. Many choose to continue existing as normally as they can. I for one don't bother with the expense of food unless we have guests, but some find it easier to cope by acting the same as they did before. You will have to find your own way.

In theory, yes. Even though our blood technically no longer flows, we can still bleed to death if we're wounded badly enough. I'm unaware if asphyxiation or drowning will have the same affect on us, since we should be able to hold our breath indefinitely, but the City is often throwing curve balls.

If you do die again, then you ought to be back in a day or so, perhaps a little longer. As far as I know, there is no penalty for dying numerous times, though I would suggest rethinking one's habits if that is the case.