What Is the Main Conclusion of Both the Permanent-Income Hypothesis

question 121

Essay

What is the main conclusion of both the permanent-income hypothesis and life-cycle model of consumption? Carefully explain.

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Definitions:

Evolutionary

pertaining to evolution, it refers to the processes by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Competitive Sports

Athletic contests that are characterized by rivalry and require skill and effort to win or succeed.

Genetic Predisposition

The increased likelihood of developing a particular disease or condition based on an individual's genetic makeup.

Goal-directed Behaviour

describes actions that are motivated by an intention to achieve a specific outcome or objective.