According to Modigliani's Life-Cycle Hypothesis, the Consumption Function Shifts Upward

question 117

Multiple Choice

According to Modigliani's life-cycle hypothesis, the consumption function shifts upward as _____ increases.

• A) income
• B) wealth
• C) the marginal propensity to consume out of income
• D) the number of years until retirement

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Definitions:

Industry Analysis

The evaluation of the market environment in which a business operates, including competition, demand, and industry trends.

Executive Summary

A concise overview of a document's key points, usually found at the beginning to give readers a quick insight.

Financial Projections

Estimates of future revenue, expenses, and financial performance of a business.

GDP Averages

A statistical measure that represents the average value of the gross domestic product over a specified period, indicating the economic health of a country.