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Habit Formation in Consumption Implies That

Question 283

Multiple Choice

Habit formation in consumption implies that


A) the amount of current consumption spending is not related to the amount of past real consumption spending.
B) the amount of current consumption spending is directly related to the amount of past real consumption spending.
C) the amount of current consumption spending is negatively related to the amount of past real consumption spending.
D) consumption spending changes in a random manner over time.

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