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Questions › UGC-NET › UGC-NET 2026 › Q25
2 marksMacroeconomics › Consumption and investment › Relative income, permanent income and life-cycle hypothesesHardabout 2 min

UGC-NET 2026 Question 25: Consumption and investment

Match List - I with List - II: List-I: A. Life Cycle Hypothesis; B. Drift Theory; C. Ratchet Effect; D. Permanent Income Hypothesis List-II: I. Milton Friedman; II. Franco Modigliani; III. Aurther Smithies and Tobin; IV. Duesenburry

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Consumption and investment has come up 74 times in 7 exams since 2005.

What this question tests

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.

  • IIT JAM 2021 · Q59Individuals earn and consume from age 18, retire at 60 and die at 90, leaving no debt or bequests. Income at…
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Question from the UGC-NET 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.