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Economics

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

Select one:

a. inheriting $10,000 from a relative

b. obtaining $10,000 by winning a lawsuit

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

d. winning $10,000 in the lottery

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

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91229904

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