According to Friedman's permanent income hypothesis, which of the following statements about transitory income is true?
a. It reflects the unexpected gains of income are transitory income.
b. It reflects the income of people who have temporary employment.
c. People's consumption depends on transitory income.
d. It reflects the income of retired people.
e. Habitual losses (or gains) at gambling are transitory income.
A
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The inflow of foreign investment into the U.S. economy reflects a high level of confidence in the United States.
Answer the following statement true (T) or false (F)
Negative marginal utility implies that:
a. ?the price of a good increases as additional units are consumed. b. ?total utility is negative. c. ?total utility decreases as additional units of a good are consumed. d. ?the total revenue spent by a consumer on a good decreases as more of the good is purchased. e. ?marginal utility increases as additional units of a good are consumed.