According to the Permanent Income Hypothesis

question 176

Multiple Choice

According to the permanent income hypothesis,

• A) a change in income regarded as permanent will have a greater impact on saving than on consumption.
• B) a change in income regarded as temporary will have a greater impact on saving than on consumption.
• C) regardless of whether a change in disposable personal income is permanent or temporary; people will change consumption by moving along the consumption function.
• D) a change in income regarded as temporary will not affect consumption much since it will have little effect on average lifetime income.

---

Definitions:

Musically-gifted Peers

Individuals of the same age group who possess exceptional musical talents or aptitudes.

Faculty of Music

An academic division or department within a college or university, specializing in the study of music and its performance.

Epidemiological Study

Research that studies the patterns, causes, and control of diseases in groups of people, aiming to identify risk factors and preventative measures.

Incidence

The number of new cases of a disease or condition that appear in a specific population within a certain period of time.