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Meaning of permanent income hypothesis | Babel Free

Noun CEFR C1

Definitions

A theory attempting to describe how agents spread consumption over their lifetimes, supposing that a person's consumption at a point in time is determined not just by their current income but also by their expected income in future years, which is seen as the driver of change.

CEFR level

C1
Advanced
This word is part of the CEFR C1 vocabulary — advanced level.
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