Milton Friedman in His Book on Consumption Function, Discussed the Importance

question 95

Multiple Choice

Milton Friedman in his book on consumption function, discussed the importance of _____, rather than _____, to understand consumer spending.

• A)savings;expenditure
• B)permanent income;current income
• C)money supply;real output
• D)wages;savings
• E)real output;prices

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Definitions:

Assumptions

Beliefs or ideas accepted as true without proof.

Hunches

are intuitions or feelings that guide one's decisions or beliefs without concrete evidence.

Gut-Level Communication

Gut-Level Communication refers to honest, direct communication that comes from deep personal feelings or instinctual reactions.

Genuine Self-Disclosure

The process of openly and honestly sharing one's true thoughts, feelings, and experiences with others, facilitating deeper connections and understanding.