Assume that your consumption decisions are made according, Ask an Expert

Economics

Assume that your consumption decisions are made according to the permanent income theory. Which of the following would lead to the largest increase in current consumption?

A. winning $10,000 in the lottery

B. taking a new job with a salary that is $10,000 higher than your current salary

C. inheriting $10,000 from a relative

D. obtaining $10,000 by winning a lawsuit

E. getting a one-time $10,000 bonus from your employer

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91234044

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