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Smallest increase in current consumption

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For this question, ignore tax considerations of each of the following. Assume that consumption decisions are made according to the permanent income theory. Which of the following would lead to the smallest increase in current consumption?

  • obtaining $10,000 by winning a lawsuit
  • getting a one-time $10,000 bonus from your employer
  • winning $10,000 in the lottery
  • inheriting $10,000 from a relative
  • all of the above

Reference no: EM131263735

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