If People Can Borrow and Lend to Perfectly Smooth Out

question 1

Multiple Choice

If people can borrow and lend to perfectly smooth out their lifetime living standards, then

• A) transitory income is a good measure of the distribution of living standards.
• B) none of these answers.
• C) permanent income is a good measure of the distribution of living standards.
• D) life-cycle income is a good measure of the distribution of living standards.
• E) current annual income is a good measure of the distribution of living standards.

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Definitions:

Secure Transactions

Financial or data exchanges that are protected against fraud, theft, or unauthorized access through various security measures.

Lists

Inventories or records in a software or system, detailing items, accounts, or data for easy access and management.

Paycheck Style

Refers to the format or template used to present details on an employee's paycheck, such as earnings, deductions, and net pay.

Electronic

Relating to technology that operates on the principles of electronics; typically involves devices that utilize electrical power to function.