Q
If people can borrow and lend to perfectly smooth out their lifetime living standards, then ?
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A
A. Transitory income is a good measure of the distribution of living standards
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B
B. None of these answers
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C
C. Permanent income is a good measure of the distribution of living standards.
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D
D. Life-cycle income is a good measure of the distribution of living standards.
Correct Answer:
C. C. Permanent income is a good measure of the distribution of living standards.
