Which of the Following Summarize(s) the Findings in the Consumption

question 102

Multiple Choice

Which of the following summarize(s) the findings in the consumption expenditure literature?
i. The permanent income hypothesis provides a useful description of household
Consumption behavior.
ii. Households do not engage in precautionary saving.
iii. The marginal propensity to consume out of temporary income is high.

• A) i
• B) i and iii
• C) ii and iii
• D) iii
• E) ii

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