Permanent income refers to the average level of a person's expected future income stream.

Name: Permanent income refers to the average level of a person's expected future income stream.
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Permanent income theory, developed by Milton Friedman, argues that individuals' consumption patterns are based on their long-term expectations of income, or their average level of expected future income stream. Therefore, permanent income is the expected income that individuals believe will continue in the future.

Permanent Income Refers to the Average Level of a Person's