A family's ability to buy goods and services depends largely on the family's

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Quizplus · Accepted Answer

Permanent income, also known as long-term average income, refers to the income that a family can reliably expect to earn over time. This is a better indicator of a family's ability to buy goods and services than transitory income, which may vary from one month to the next and is less predictable. Economic mobility and the family's place in the economic life cycle may also have an impact but are not as critical as the family's permanent income.

A Family's Ability to Buy Goods and Services Depends Largely