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The permanent income hypothesis suggests that households base their consumption on:
  • a)
    Current income.
  • b)
    Anticipated future income only.
  • c)
    Permanent income.
  • d)
    Transitory income.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
The permanent income hypothesis suggests that households base their co...
According to the permanent income hypothesis, households base their consumption decisions on their permanent income, which is the amount they can consume while keeping their wealth intact.
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The permanent income hypothesis suggests that households base their consumption on:a)Current income.b)Anticipated future income only.c)Permanent income.d)Transitory income.Correct answer is option 'C'. Can you explain this answer?
Question Description
The permanent income hypothesis suggests that households base their consumption on:a)Current income.b)Anticipated future income only.c)Permanent income.d)Transitory income.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 The permanent income hypothesis suggests that households base their consumption on:a)Current income.b)Anticipated future income only.c)Permanent income.d)Transitory income.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 The permanent income hypothesis suggests that households base their consumption on:a)Current income.b)Anticipated future income only.c)Permanent income.d)Transitory income.Correct answer is option 'C'. Can you explain this answer?.
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