Multiple Choice
The random-walk theory of consumption asserts that changes in consumption arise from unexpected changes in income.This approach
A) clearly contradicts Modigliani's theory
B) clearly contradicts Friedman's theory
C) contradicts Modigliani's theory but supports Friedman's theory
D) supports Modigliani's theory but contradicts Friedman's theory
E) supports Modigliani's and Friedman's theories
Correct Answer:
Verified
Correct Answer:
Verified
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