If People Can Borrow and Lend to Perfectly Smooth Out

question 46

Multiple Choice

If people can borrow and lend to perfectly smooth out their lifetime living standards, then

• A) transitory income is a good measure of the distribution of living standards.
• B) None of these answers.
• C) permanent income is a good measure of the distribution of living standards.
• D) life cycle income is a good measure of the distribution of living standards.
• E) current annual income is a good measure of the distribution of living standards.

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Definitions:

Hepatitis A

An acute infectious disease of the liver caused by a virus that is transmitted by contaminated food or water or by direct person-to-person contact.

Fecal Matter

Solid or semisolid waste material from the digestive tract that is expelled through the anus.

Contaminated Food

Food that has been tainted with harmful bacteria, viruses, chemicals, or other substances, making it unsafe to eat.

Paroxysmal Stage

a period in the course of a disease characterized by a sudden onset or intensification of symptoms.