Permanent and transitory incomes differ in the way that permanent income is ______ than is transitory income.
A) larger
B) more persistent
C) taxed at a higher rate
D) more variable

Question

Quizplus · Accepted Answer

Permanent income is more persistent than transitory income, meaning it is more stable and predictable over time. Transitory income, on the other hand, is more variable and can fluctuate rapidly due to factors such as changes in employment, bonuses, or other one-time sources of income.

Permanent and Transitory Incomes Differ in the Way That Permanent