Suppose Someone Anticipates a Large Increase in Income Sometime During

Multiple Choice

Suppose someone anticipates a large increase in income sometime during the n ext ye a r. The more like ly it ap p e a rs that that increase will be perm a n e n t ,

A) the larger is the increase in consumption even before the increment arrives.
B) the larger is the increase in consumption when the increment arrives.
C) the larger is the increase in income in every year after the increment arrives.
D) all of the above.
E) none of the above.