Which of the Following Theories Predicts That Current Consumption Increases

question 413

Multiple Choice

Which of the following theories predicts that current consumption increases when a person expects an increase in future income?

• A) the life-cycle theory of consumption
• B) the permanent income hypothesis
• C) the Keynesian theory of consumption
• D) all of the above

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Definitions:

Marketplace

A platform or area where goods and services are exchanged or sold.

Marketing Concept

A business philosophy emphasizing customer needs and satisfaction as the key to achieving organizational goals.

Paradigm Shift

A fundamental change in the approach or underlying assumptions of a particular field or discipline.

Flatter Organizational Structure

An organizational design with fewer levels of hierarchy, encouraging better communication and faster decision-making between upper management and employees.