Which of the following individuals is responsible for developing the permanent income theory of consumption?
A) Keynes.
B) Friedman.
C) Lucas.
D) Modigliani.
E) Sargent.

Question

Quizplus · Accepted Answer

Milton Friedman is responsible for developing the permanent income theory of consumption, which suggests that an individual's consumption at a point in time is determined not just by their current income but by their longer-term income expectations.

Which of the Following Individuals Is Responsible for Developing the Permanent