The Hypothesis That People Attempt to Stabilize Their Consumption Over

question 65

Multiple Choice

The hypothesis that people attempt to stabilize their consumption over their entire lifetime is the

• A)life cycle hypothesis.
• B)forward looking expectation hypothesis.
• C)permanent-income hypothesis.
• D)None of the above.

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Definitions:

Income

The financial gain received by an individual or a business in exchange for providing goods, rendering services, or through investing capital.

Retained Earnings

The part of a company's net earnings not paid out as dividends but kept within the company.

Service Period

The duration for which a service is provided or expected to be provided, often used in the context of accounting for employee benefits or service contracts.

Compensation Cost

The total amount of monetary and non-monetary payments made to employees for their work or services.