When Ando and Modigliani set forth a consumption function depending on disposable income and the value of assets, they expected the coefficient for assets
A) to be negative and large in magnitude compared with the coefficient for income, an estimate of the short-run marginal propensity to consume.
B) to approximate the real interest rate, an estimate of the annual consumption that can be supported by interest earnings on a piece of financial capital.
C) to be a reasonably close estimate of the long-run marginal propensity to consume, because assets holdings are dominated by the long-term portions of investment portfolios.
D) b and c only.
E) none of the above.

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The Answer of When Ando and Modigliani set forth a consumption function depending on disposable income and the value of assets, they expected the coefficient for assets
A) to be negative and large in magnitude compared with the coefficient for income, an estimate of the short-run marginal propensity to consume.
B) to approximate the real interest rate, an estimate of the annual consumption that can be supported by interest earnings on a piece of financial capital.
C) to be a reasonably close estimate of the long-run marginal propensity to consume, because assets holdings are dominated by the long-term portions of investment portfolios.
D) b and c only.
E) none of the above.

When Ando and Modigliani Set Forth a Consumption Function Depending