Answer to Question #294030 in Macroeconomics for Akash

Question

. What do you mean by transitory income?

Answer 1

Transitory income is defined as the difference between permanent income and current income of a person. Current income is the cash that is expected instantly to a short term and permanent income hypothesis deal the amount of a money should use in a long term at regular interval. The difference between the two income gives us transitory income.