The Permanent-Income Theory of Consumption Implies That

The permanent-income theory of consumption implies that

A) the short-run multiplier is smaller than the long-run multiplier
B) the short-run multiplier is larger than the long-run multiplier
C) the short-run multiplier is identical to the long-run multiplier
D) the long-run multiplier is equal to 1
E) the short-run multiplier is less than 1