There is substantial evidence that people base their consumption decisions more on their current income than on the average income they expect to receive over a long period of time. Option FALSE

Explanation:

The consumption behavior depends on factors like taste and preference, income, age, gender, prices of the substitute commodity as well as of complementary commodity and other market conditions. Among this one of the factor is the expectation of the consumer. If the consumer expects that there will be a rise in his future income his consumption patterns will tend to rise today and vice versa. It is therefore that the consumption decisions depends more on the future expected income than the current income level.