According to the Permanent Income Hypothesis

Multiple Choice

According to the permanent income hypothesis,

A) consumption in any period depends on the stable annual income that people expect to earn in their jobs.
B) the amount of income that people require depends on the amount of consumption they need and want to undertake.
C) consumption in any period depends on the average annual income people expect to receive for the rest of their lives.
D) the amount of personal saving depends on the amount of consumption people plan to undertake when they retire.