According to ______________,if you suddenly won the lottery,you would spend only a small part of your winnings right away.

A) the paradox of thrift
B) the permanent income hypothesis
C) Thorstein Veblen's Theory of the Leisure Class
D) the theory of the multiplier

Permanent Income Hypothesis

Formulated by Milton Friedman, it states that the strongest influence on consumption is one’s estimated lifetime income.

Paradox of Thrift

An economic theory suggesting that while saving is beneficial to an individual, increased savings by the entire population can lead to a decrease in aggregate demand, ultimately reducing savings at a macroeconomic level.

Theory of the Leisure Class

A socio-economic theory presented by Thorstein Veblen, which critiques consumerism and status-driven consumption, emphasizing the social uses of wealth and leisure to display status rather than for utility.