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  3. Study Set
    Macroeconomics, Theories and Policies 2
  4. Exam
    Exam 2: Economic Models,Concepts and Theories: Part A
  5. Question
    According to Milton Friedman Theory of Permanent Component of Consumption-Expenditure
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According to Milton Friedman Theory of Permanent Component of Consumption-Expenditure

Question 2

Question 2

Multiple Choice

According to Milton Friedman Theory of permanent component of consumption-expenditure depends on i. Transitory income alone ii. Transitory and permanent income iii. Permanent income alone iv. Windfall gains Codes :


A) i and ii are correct
B) i and iii are correct
C) ii and iv are correct
D) only iii is correct

Correct Answer:

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