The Behavior of Consumers Spreading Increases in Income Earned in One

question 23

Multiple Choice

The behavior of consumers spreading increases in income earned in one period into increases in consumption over several periods is known as:

• A) random-walk consumption.
• B) transitory consumption.
• C) consumption smoothing.
• D) the income effect.

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Definitions:

Paid Labour Force

Individuals who perform tasks or services in return for monetary compensation as part of the formal economy.

Canadian Women

Refers to female individuals who are citizens of Canada or who identify culturally or ethnically with Canada.

1951

A year in the 20th century marked by numerous historical events, including the signing of the ANZUS Pact, the beginning of the Korean War, and the term frequently associated with the start of the Cold War era.

Peak

The highest point or maximum level of something, such as a mountain top, or the apex of achievement, performance, or activity.