Which of the Following Summarize the Findings in the Consumption

question 36

Multiple Choice

Which of the following summarize the findings in the consumption expenditure literature?
i. The permanent income hypothesis provides a useful description of household consumption behavior.
ii. Households do not engage in precautionary saving.
iii. The marginal propensity to consume out of temporary income is high.

• A) i
• B) i and iii
• C) ii and iii
• D) iii
• E) ii

---

Definitions:

Consolidated Patents

The collective intellectual property rights maintained by a parent company and its subsidiaries, often accounted for on a consolidated balance sheet.

Outstanding Stock

The total shares of a corporation's stock that are currently owned by all its shareholders, including shares held by institutional investors but excluding shares owned by the corporation itself.

Cash

Cash involves money in the form of currency, which includes bank notes and coins, that is in hand or readily available in deposit accounts for immediate use.

Building

A structure established or built from materials to provide shelter or accommodate individuals, businesses, or activities.