Milton Friedman viewed current income as the sum of permanent income and:
A) bonus income.
B) transitory income.
C) temporary income.
D) surprise income.

Question

Quizplus · Accepted Answer

Milton Friedman viewed current income as the sum of permanent income and transitory income. Transitory income is income that is not expected to continue in the long run, such as bonuses or temporary salary increases. Permanent income, on the other hand, is income that can be expected to continue over the long run, such as regular salary or investment income.

Milton Friedman Viewed Current Income as the Sum of Permanent