A(n) _______ relationship exists between expected future income and consumption.
A) negative
B) positive
C) indirect
D) constant

Question

Quizplus · Accepted Answer

A positive relationship exists between expected future income and consumption, meaning that as individuals expect their future income to increase, they will increase their current consumption. This is known as the permanent income hypothesis in economics.

A(n) _______ Relationship Exists Between Expected Future Income and Consumption