Q. 2012 JUNE II
Identify the correct chronological order of the following :
a. Keynes’ consumption function
b. Life Cycle hypothesis
c. Relative income hypothesis
d. Friedman’s permanent income hypothesis
Codes :
(A) d, b, a, c (B) b, a, c, d
(C) a, c, d, b (D) c, d, b, a
ANSWER: (C)
i. Absolute Income Hypothesis-Keynes(1936)
ii. Relative Income Hypothesis-Duesenberry(1949)
iii. Permanent Income Hypothesis-Friedman(1957)
iv. Life Cycle Hypothesis(Wealth Theory of Consumption)Ando, Modigliani(1954/1963)