According to the Permanent-Income Theory of Consumption

question 8

Multiple Choice

According to the permanent-income theory of consumption

• A)permanent income is always lower than transitory income
• B)the mpc out permanent income is close to zero
• C)the mpc out of transitory income is close to 1
• D)all of the above
• E)none of the above

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Definitions:

Personal Orientation Inventory

A psychological assessment tool used to measure personal values and behaviors indicative of self-actualization and personal growth.

Projective Technique

A psychological testing method where individuals project their own attributes, thoughts, and feelings through interpretations or responses to ambiguous stimuli.

Time Competence

The ability to live in and appreciate the present moment while making rational decisions based on both current reality and future possibilities.

Inner Directedness

A personality trait where individuals are guided by their own values and judgments rather than external influences.