Question

Identify the correct statements:
A. As per absolute - income theory of consumption the current consumption expenditure depends upon the current and absolute level of income.
B. The relative - income theory of consumption states the proportion of income consumed by a household depends on the level of its income in relation to the household with which it identifies itself.
C. According to permanent income hypothesis, it is the current income which determines the level of current consumption expenditure.
D. The life cycle theory of consumption was given by Ando and Modigliani
E. The lifecycle hypothesis postulates, that individual consumption in any time period depend upon resources available to individual, the rate of return on his capital and the age of individual.
Choose the correct answer from the options given below:

• A. A, B, D and E only
• B. A, B and C only
• C. A, B, C and D only
• D. A and E only

Answer 1

The Correct Option is A

The correct option is (A): A, B, D and E only