Milton Friedman first proposed the hypothesis that individuals consume a fraction of their expected,or ________,income.

Question

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Milton Friedman proposed the Permanent Income Hypothesis, which suggests that an individual's consumption is determined by their expected permanent income rather than their current disposable income or current income level. This means that individuals are more likely to adjust their consumption patterns based on their long-term income expectations rather than their short-term fluctuations in income.

Milton Friedman First Proposed the Hypothesis That Individuals Consume a Fraction