Which of the following will most likely have the greatest effect on an individual's consumption function?
A)winning a small amount in the lottery
B)a one-time tuition grant
C)a week of high overtime pay
D)an inheritance paying a modest annual dividend

Question

Which of the following will most likely have the greatest effect on an individual's consumption function?
A)winning a small amount in the lottery 
B)a one-time tuition grant 
C)a week of high overtime pay 
D)an inheritance paying a modest annual dividend

Quizplus · Accepted Answer

An inheritance paying a modest annual dividend provides a consistent and ongoing increase in income, which is more likely to affect long-term consumption patterns compared to one-time or short-term income increases.

Which of the Following Will Most Likely Have the Greatest