Psychological Law of consumption is associated with the name of :
Keynes’s psychological law says consumption rises when income rises, but by less than the increase in income. Friedman is associated with permanent income, Duesenberry with…
Choose your answer
Psychological Law of consumption is associated with the name of :
Answer and explanation
Correct answer A
Keynes’s psychological law says consumption rises when income rises, but by less than the increase in income. Friedman is associated with permanent income, Duesenberry with relative income, and Modigliani with the life-cycle hypothesis.
Practice for these exams
-
UGC NET Economics