The Theory of Intertemporal Choice,and the Life-Cycle and Permanent Income

question 67

Multiple Choice

The theory of intertemporal choice,and the life-cycle and permanent income hypotheses have in common the assumption that ________.

• A)consumption decisions are affected by current expectations about lifetime resources
• B)consumption decisions are based on all available information
• C)current income,rather than expected income,has the greater influence on consumption decisions
• D)decisions to borrow and save are influenced much more by immediate circumstances than by long-term consequences

Understand the concept of discretionary income and its calculation.

Recognize the impact of economic behaviors and conditions on discretionary income.

Identify spending habits and how they are influenced by changes in income and economic conditions.

Describe the factors that contribute to changes in consumer spending and saving.

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Definitions:

Marketing Efforts

Activities and strategies employed by a company to promote its products or services and increase its market share.

Welcomes Change

The attitude of being open and receptive to new experiences, alterations in one’s environment, or differing ways of doing things.

Workforce Diversity

The inclusion of individuals from various backgrounds, cultures, races, ages, genders, and other distinct characteristics in the workforce.

Resistance To Change

The reluctance of people or groups to alter their behavior, processes, or attitudes in response to new situations or changes.