Multiple Choice
According to the permanent-income theory, which of the following would have the greatest impact on the current consumption of a 45 year-old tenured college professor?
A) a promotion to full professor combined with a $5,000 raise
B) a $5,100 advance payment for a book that will take two years to write
C) winning $5,200 in the Reader's Digest Sweepstakes
D) a loss of a stamp collection worth $5,400
E) an inheritance of $5,500 from a distant uncle
Correct Answer:
Verified
Correct Answer:
Verified
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