Examlex
What are the three elements of exposure?
Permanent Income Hypothesis
A theory suggesting that people's consumption choices are based on their long-term average income rather than their current income.
Tax Cut
A reduction in the amount of taxes imposed by a government, aiming to stimulate economic growth or achieve other policy objectives.
Disposable Income
After income taxes are taken out, disposable income represents the funds available to a household or individual for saving and spending purposes.
APS
Average Propensity to Save, which is the fraction of total income that is saved by an economy or individual.
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