Milton Friedman Argued That, on Average, Consumption Is

question 18

Multiple Choice

Milton Friedman argued that, on average, consumption is:

• A) proportional to income.
• B) a fraction of permanent income that rises as permanent income rises.
• C) a fraction of permanent income that falls as permanent income falls.
• D) proportional to permanent income.

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Definitions:

Cheer Themselves Up

The act of improving one's mood or emotional state through positive thinking, activities, or other self-help methods.

Normal-Weight People

Individuals whose body weight falls within a range considered healthy, according to measurements such as body mass index (BMI).

Energy Output

The amount of energy produced or expended in a process, such as during physical activity or by a mechanical or electrical device.

Breast-Fed

The act of feeding a baby with milk directly from the mother's breast, which is believed to provide ideal nutrition and immune system benefits.