8.3 Consumption Theory After Keynes . Significance of permanent income Income variable is relatively steady Permanent or long -term income will make the individua adjust his consumption behavior &o Deficiency of permanent income hypothesis Decide whether income change belongs to permanent phenomena by adaptable anticipation 友学经济学院8.3 Consumption Theory After Keynes ❖ Significance of permanent income  Income variable is relatively steady  Permanent or long-term income will make the individual adjust his consumption behavior ❖ Deficiency of permanent income hypothesis  Decide whether income change belongs to permanent phenomena by adaptable anticipation