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According to the Permanent Income Theory, Households Spend Money Based

Question 47

Multiple Choice

According to the permanent income theory, households spend money based on:


A) a belief that their household income will never change.
B) a belief that there will always be income although it may vary some.
C) an expectation that the government will provide transfer payments if income ever stops.
D) their expected income over their lifetime and not based on current income.

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