Modigliani's Consumption Function Differs from Both Friedman's and Keynes' Function

question 72

Multiple Choice

Modigliani's consumption function differs from both Friedman's and Keynes' function in which of the following?

• A) it is based on forward looking expectations
• B) it is based on disposable income received over time
• C) it is based on the value of assets accumulated over time
• D) it is based on disposable income or permanent income

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Definitions:

Attributions

Explanations that people construct to understand the causes of behavior, either their own or that of others.

Emotional Reactions

Responses that involve feelings, such as happiness, anger, or sadness, triggered by external events or internal thoughts.

Expectations

Beliefs or anticipations about the way events, actions, or behaviors should unfold in the future.

Reappraisal

A cognitive process that involves changing one's interpretation of a situation in order to alter its emotional impact.