The sensitivity of current consumption to changes in current income can be explained by
A)myopia
B)the absence of liquidity constraints
C)the fact that consumers have the opportunity to borrow
D)the fact that consumers always realize when a permanent change in income has occurred
E)none of the above

Question

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The Answer of The sensitivity of current consumption to changes in current income can be explained by
A)myopia
B)the absence of liquidity constraints
C)the fact that consumers have the opportunity to borrow
D)the fact that consumers always realize when a permanent change in income has occurred
E)none of the above

The Sensitivity of Current Consumption to Changes in Current Income