Largest increase in current consumption

Reference no: EM13694602

Assume that your consumption decisions are made according to the permanent income theory. Which of the following would lead to the largest increase in current consumption?

A. winning $10,000 in the lottery

B. taking a new job with a salary that is $10,000 higher than your current salary

C. inheriting $10,000 from a relative

D. obtaining $10,000 by winning a lawsuit

E. getting a one-time $10,000 bonus from your employer

Reference no: EM13694602

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