Question

absolute income hypothesis and relative income hypothesis differenciation​

Answer 1

Answer:

Duesenberry's first hypothesis says that consumption depends not on the 'absolute' level of income but on the 'relative' income— income relative to the income of the society in which an individual lives. ... The outcome of this hypothesis is that the individuals' APC depends on his relative position in income distribution.

Explanation:

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Answer 2

Explanation:

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