The Assertion That Consumption Depends on Expected Average Annual Income

question 77

Multiple Choice

The assertion that consumption depends on expected average annual income is called

• A) permanent income.
• B) the current income hypothesis.
• C) current income.
• D) the permanent income hypothesis.

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Definitions:

Control Group

In experiments, a group of subjects who do not receive the experimental treatment and are used as a benchmark to measure how the other tested subjects do.

Aggressive Tendencies

Patterns of behavior aimed at causing harm or injury to others, fear of harm in others, or assertion toward dominance in a social context.

Modeling

A method used in psychology to learn through the observation and replication of others' behaviors.

Perceives

The process of becoming aware of something through the senses and the way in which information is interpreted and understood.