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The "Life Cycle" and "Permanent Income" Theories of Consumption Share

Question 7

Multiple Choice

The "life cycle" and "permanent income" theories of consumption share which of the following features?


A) Consumption spending depends on income, rather than wealth.
B) Consumption spending should fluctuate widely from year to year.
C) Consumers look ahead to the future in making current spending decisions.
D) all of the above
E) none of the above

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