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QUESTION 8 Which of the following statements best describes an implication of the Permanent Income Hypothesis? O . The MPC out of permanent income is equal to the MPC out of temporary income. O b. The Marginal Propensity to Consume (MPC) out of permanent income is larger than the MPC out of temporary income. " The MPC out of permanent income is larger than the MPC out of temporary income, only if income effects dominate substitution effects O d. The MPC out of permanent income is smaller than the MPC out of temporary income