The Permanent Income and Life-Cycle Hypotheses Imply That

question 28

Multiple Choice

The Permanent Income and Life-Cycle Hypotheses imply that

• A)Consumers generally favor current consumption over future consumption
• B)The primary determinant of current consumption is permanent income
• C)The primary determinant of permanent income is current consumption
• D)Consumers are more likely to save if they are uncertain about the future

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Definitions:

Motivation

Factors of differing strength that energize, direct, and sustain behavior.

Stealing

The act of taking something that doesn't belong to you without permission or legal right and with no intention to return it.

Primary Sex Characteristics

The physical attributes directly involved in reproduction, such as the ovaries in females and the testes in males.

Hormonally Driven

Behaviors or physiological processes that are significantly influenced or regulated by hormones.