The Permanent Income Hypothesis is a theory in economics that posits that individuals base their consumption decisions on their expectations of their long-term income.
This theory has important implications for economic policymaking.. Permanent Income Hypothesis: What It Is, How It Works, and Its Impact What is the permanent income hypothesis quizlet? The permanent income hypothesis is an economic theory that suggests that people’s income tends to remain relatively stable over time, despite changes in employment or other factors. The … Read more