Modern Forward-Looking Theories of Consumption

Modern forward-looking theories of consumption

A) are founded on the pioneering work done by Milton Friedman and Franco Modigliani on the permanent income theory and the life cycle theory, respectively.
B) are based on consumption depending on current disposable income, current wealth, and expected paths of disposable income and wealth in the future.
C) assert that individuals make long-term consumption decisions each year, using as much information about the present and the future as possible.
D) do not preclude individuals' changing consumption plans as new information presents itself.
E) all of the above.