alleryStart learning →Which theory of consumption did Modigliani and Brumberg propose in 1954?
APermanent income theory
BLife-cycle hypothesis
CRelative consumption theory
DLiquidity preference theory
Answer & Solution
Correct answer: B. Life-cycle hypothesis
Franco Modigliani and Richard Brumberg proposed the life-cycle hypothesis of consumption.
Keep practising Determination of National Income
Browse all Determination of National Income questions for CA Foundation, or explore more Business Economics topics.
Related questions
Which consumption theory is Milton Friedman's (1957)?Who introduced the consumption function into macroeconomics in 1936?The consumption function describes the relationship between consumption and what?In which decade was the modern theory of the multiplier developed by Kahn, Keynes and otheA plot of a variable's response to a shock over time t, t+1, t+2 is called:In the open-economy multiplier formula, the symbol m stands for the propensity to:Paul Samuelson credited which economist for inspiring his 1939 multiplier-accelerator modeThe usual Keynesian multiplier formulas measure the effect on which quantity only?