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:

Stimulus

Any event or situation that evokes a response or reaction, in psychology often referred to in the context of stimulus-response theory.

PIPEDA

Stands for Personal Information Protection and Electronic Documents Act, a Canadian law governing data privacy for private sector personal information.

Suppliers

Businesses or individuals providing goods or services to other entities under agreed-upon terms.

Contractors

Individuals or companies that undertake contracts to provide services or perform work, typically in construction or other industries requiring specialized skills.