According to the Permanent Income Hypothesis, a Temporary Increase in Income

question 407

Multiple Choice

According to the permanent income hypothesis, a temporary increase in income that does not affect average lifetime income would

• A)cause a large increase in consumption.
• B)cause no change in consumption.
• C)cause an increase in consumption and saving by the same amount.
• D)cause a decrease in consumption and saving by the same amount.

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Definitions:

Deetz

Refers to the work of Stanley Deetz, who advocates for critical scholarship in organizational communication, emphasizing the role of communication in the exercise of power and control within organizations.

Corporate System

A structure or framework that defines the practices, policies, and organizational arrangements of a corporation.

Consumer Needs

The essential requirements that consumers seek to fulfill with products or services, including functional, emotional, and social needs.

Cultural Form

Indicates the various expressions and manifestations of culture, including art, music, literature, and traditions, which embody the values and norms of a society.