Which problem in measuring inequality is related to the extent that a family saves and borrows to buffer itself

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The problem in measuring inequality related to the extent that a family saves and borrows to buffer itself is known as transitory versus permanent income. This is because households may experience fluctuations in income in the short term due to transitory shocks, such as job loss or unexpected expenses, which may cause them to save or borrow to maintain their standard of living. Thus, a measure of inequality that only captures current income levels may not accurately reflect the long-term economic well-being of households.

Which Problem in Measuring Inequality Is Related to the Extent