Consumption spending in any one period that is determined by income in that period is explained by the
A) current income hypothesis.
B) disposable personal income theory of consumption.
C) transitory income theory of consumption.
D) permanent income hypothesis.

Question

Quizplus · Accepted Answer

The current income hypothesis posits that consumption spending in any given period is primarily determined by current income in that same period.

Consumption Spending in Any One Period That Is Determined by Income