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The Permanent Income Hypothesis Suggests That Consumer

Question 108

Multiple Choice

The permanent income hypothesis suggests that consumer:


A) spending depends on income people expect over the long term,rather than on current income.
B) spending is smoothed each month in response to changes in their current disposable income.
C) spending is made up of an autonomous amount and an amount dependent on disposable income.
D) savings depends on one's lifetime income.

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