# If people can borrow and lend to perfectly smooth out their lifetime living standards, then ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: If people can borrow and lend to perfectly smooth out their lifetime living standards, then ? Correct Answer: C. permanent income is a good measure of the distribution of living standards.. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# If people can borrow and lend to perfectly smooth out their lifetime living standards, then ?

Direct Answer & Quick Reference

The correct option is **C. permanent income is a good measure of the distribution of living standards.**.

A. transitory income is a good measure of the distribution of living standards

B. none of these answers

C. permanent income is a good measure of the distribution of living standards. **(Correct Answer)**

D. life-cycle income is a good measure of the distribution of living standards.

E. current annual income is a good measure of the distribution of living standards.

✨ Explain with AI

Verified Key: C. permanent income is a good measure of the distribution of living standards.
Solved by 5,148+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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