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EC 302 Final Exam with Elaborate Questions and Correct Answers
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---18February 20262025/2026A+
- EC 302 Final Exam with Elaborate 
Questions and Correct Answers 
1. Which of the following are characteristic of Friedman's 'Permanent Income 
Hypothesis'? - ANSWER i) The main influence on long-run consumption is 
some form of long-run average income ii) Consumption will tend to be a 
constant proportion of long-run average income (permanent income) 
2. Which three of the following are characteristics of Modigliani's 'Life Cycle 
Hypothesis'? - ANSWER Consumption is ...
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