Multiple Choice
The fundamental lesson of the life-cycle and permanent-income hypotheses is that:
A) individuals smooth their consumption patterns over their lifetimes.
B) individuals vary their consumption patterns over their lifetimes.
C) individuals' consumption patterns vary as their incomes change.
D) individuals' consumption changes with changes in their temporary incomes.
E) taxes are ineffectual.
Correct Answer:
Verified
Correct Answer:
Verified
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