According to the Permanent-Income Theory, If Individuals a and B

Multiple Choice

According to the permanent-income theory, if individuals A and B have the same average annual income but A's income fluctuates greatly from year to year while B receives an almost even flow of income each year, then

A) A will spend less than B out of permanent income
B) B will spend less than A out of permanent income
C) A will weigh current income less heavily in making consumption decisions than B
D) B will weigh current income less heavily in making consumption decisions than A
E) A's consumption will always be less than B's