Asked by simra sohail on Jun 04, 2024
Verified
According to the permanent income hypothesis _________ and _________ have negative savings.
Permanent Income Hypothesis
A theory suggesting that people's consumption decisions are based on their long-term income expectations rather than their current disposable income.
Negative Savings
A situation where spending exceeds income, resulting in a deficit rather than savings.
- Understand the implications of the permanent income hypothesis on savings behavior.
Verified Answer
MC
Learning Objectives
- Understand the implications of the permanent income hypothesis on savings behavior.