Economics · Consumer Behaviour
The Life Cycle Theory of consumption postulates that: (A) Consumption is stable/constant throughout a lifetime relative to income fluctuations. (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 consumers maintain a stable standard of living over their course of life. Choose the correct answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(B) and (C) only
- 2(A) and (D) only✓
- 3(B), (C), and (D) only
- 4(A), (B), (C) and (D)
Correct answer
(A) and (D) only
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