According to Franco Modigliani's Life-Cycle Hypothesis, the Principal Determinant(s) of Consumption

question 21

Multiple Choice

According to Franco Modigliani's life-cycle hypothesis, the principal determinant(s) of consumption is (are) :

• A) permanent income.
• B) income and wealth.
• C) transitory income.
• D) wealth.

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Definitions:

Zhuan

In Chinese literature, refers to seal script, an ancient style of calligraphy used in China, or to historical narrative or commentary writings.

Zhao

Refers to a historical state during the Warring States period of China or to the family name common in China, indicating a wide range of cultural and historical significance.

Tatami

The traditional woven straw mat used for floor covering in Japanese architecture.

Flooring Material

Materials used for the surface of floors, such as wood, tiles, carpet, or stone.