________ provided a "natural experiment" for the permanent-income and life-cycle hypotheses, which used to provide an annual ________.
A) Texas; state income tax refund
B) Arkansas; lump sum Social Security payment
C) Nevada; credit to families' income taxes
D) New Hampshire; one-month utility payment
E) Alaska; permanent fund check

Question

Quizplus · Accepted Answer

The option that provided a "natural experiment" for the permanent-income and life-cycle hypotheses is the one that gave an annual payment, and that is the permanent fund check in Alaska. This payment is made to all residents of the state, which makes it an excellent opportunity to test these economic theories.

________ Provided a "Natural Experiment" for the Permanent-Income and Life-Cycle