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How does the permanent income hypothesis predict households' reactions to changes in income?a)Households react the same way to both permanent and transitory income changes.b)Households increase consumption proportionally for both permanent and transitory income changes.c)Households increase consumption only for permanent income changes.d)Households increase consumption only for transitory income changes.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about How does the permanent income hypothesis predict households' reactions to changes in income?a)Households react the same way to both permanent and transitory income changes.b)Households increase consumption proportionally for both permanent and transitory income changes.c)Households increase consumption only for permanent income changes.d)Households increase consumption only for transitory income changes.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How does the permanent income hypothesis predict households' reactions to changes in income?a)Households react the same way to both permanent and transitory income changes.b)Households increase consumption proportionally for both permanent and transitory income changes.c)Households increase consumption only for permanent income changes.d)Households increase consumption only for transitory income changes.Correct answer is option 'C'. Can you explain this answer?.

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