Answer to Question #185376 in Macroeconomics for Bharti

Question #185376

How will you distinguish the cycle theory of consumption from the other theories of consumption?


1
Expert's answer
2021-04-27T07:45:36-0400

The cycle theory of Consumption pays more attention to the motives for saving as compared to the other theories of consumption like permanent income hypothesis that argues strongly in favour of including wealth as well as income in the consumption function


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