Which of the following statements are correct? (A) Life cycle hypothesis was propounded by Franco Modigliani (B) Absolute Income Hypothesis was propounded by Milton Friedman (C) Relative Income Hypothesis was propounded by James Duesenberry (D) Permanent Income Hypothesis was propounded by John Maynard Keynes Choose the correct answer from the options given below:
Tap an option to check your answer.
Checking your account…
Consumption and investment has come up 74 times in 7 exams since 2005.
This question is on Relative income, permanent income and life-cycle hypotheses, part of Consumption and investment in Macroeconomics.
Why consumption reacts less than one-for-one to temporary income changes.
TestStop has 19 past-paper questions on this subtopic; the nearest in year are below.
Question from the CUET-PG 2023 Shift 2 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.