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To what principle did Adam Smith trace the wealth of nations?
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.
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