Robert E.Hall's theory of consumption behavior is called
A)the absolute-income hypothesis
B)the permanent-income theory
C)the random-walk theory
D)the buffer-stock theory
E)the life-cycle theory

Question

Quizplus · Accepted Answer

Robert E. Hall's theory of consumption behavior is known as the random-walk theory, which suggests that changes in consumption are unpredictable and follow a random path, based on the idea that consumers use all available information to make optimal consumption decisions.

Robert E.Hall's Theory of Consumption Behavior Is Called