Question:medium

The permanent income hypothesis was propounded by:

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Permanent Income Hypothesis was given by Milton Friedman. Life Cycle Hypothesis is associated with Modigliani and Brumberg.

Updated On: May 22, 2026

Dussenbery
Brumberg
Modigliani
Friedman

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The Correct Option is D

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Top Questions on Consumption and Investment Function

Which of the following is not correct about residential investment?
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Life cycle theory of consumption postulates that
(A) Consumption is constant throughout lifetime.
(B) Marginal propensity to consume out of permanent income is small.
(C) Marginal propensity to consume out of transitory income is large.
(D) It emphasizes how to maintain a stable standard of living over the course of life.
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Which of the following is not correct about residential investment?
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