The Hypothesis That Individuals Base Consumption on Their Expected Long

question 58

Multiple Choice

The hypothesis that individuals base consumption on their expected long run average income is the

• A)life cycle hypothesis.
• B)forward looking expectation hypothesis.
• C)permanent-income hypothesis.
• D)None of the above.

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Definitions:

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Opening Statement

An initial verbal or written remark that introduces a topic, presentation, argument, or case.

Shocking Statement

A declaration or claim designed to provoke strong emotions or surprise in the audience.