Answer to Question #241605 in Macroeconomics for Theesan

Question #241605

Does the absolute income hypothesis exist in Sri Lanka? Explain your answer based on the households consumption behaviour in Sri Lanka in general.


1
Expert's answer
2021-09-27T09:16:16-0400

Yes Sri Lank has an absolute income hypothesis. This is so because it is concerned with how a consumer divides his disposable income between consumption and saving.


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