Title English:
permanent income hypothesis
Definition English:
A theory of consumer spending which states that people will spend money at a level consistent with their expected long term average income. The level of expected long term income then becomes thought of as the level of "permanent" income that can be safely spent. A worker will save only if his or her current income is higher than the anticipated level of permanent income, in order to guard against future declines in income.
Title Arabic:
فرضية الدخل الدائم
Domain:
Management
Subject:
None
InformationType:
Term
SourceSymbol:
Language staff
Link: