What Is Transitory Income?

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Anonymous Profile
Anonymous answered
According to Milton Friedman in his „theory of consumption function „stated that
“Transitory income is an anticipated income. It may be either positive or negative”
For eg –a farmer may receive in a year more income than anticipated because of unusually good
monsoon or they may receive less income than anticipate because of exceptionally bad
monsoon
Sibyl Zoe Profile
Sibyl Zoe answered

Transitory income is actually a kind of short-lived income. Transitory income is the difference between the measured income and the permanent income. It can be calculated simply by subtracting the measured income and the permanent income.

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