Knowledge Is "Sticky" and Not Easily Moved

question 56

True/False

Knowledge is "sticky" and not easily moved.

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Definitions:

Liquid Assets

Assets that can be quickly converted into cash with little to no loss in value.

Credit Available

The amount of credit that a financial institution extends to a client, which the client has not yet used.

Autonomous Consumption

The level of consumption spending that occurs when income is zero, reflecting expenditures that consumers must make even when they have no income.

Permanent Income Hypothesis

Formulated by Milton Friedman, it states that the strongest influence on consumption is one’s estimated lifetime income.