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.

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Definitions:

High Performance

The achievement of exceeding normal or expected levels of productivity or efficiency.

Hindrance Stressors

Stressful conditions at work that inhibit one’s ability to achieve personal goals or growth.

Menial Tasks

Simple, repetitive, and often tedious tasks that require minimal skill.

Employee Engagement

The level of enthusiasm and dedication an employee feels towards their job and the organization, influencing their work performance and satisfaction.