According to the permanent income theory, households spend money based on:
A) a belief that their household income will never change.
B) a belief that there will always be income although it may vary some.
C) an expectation that the government will provide transfer payments if income ever stops.
D) their expected income over their lifetime and not based on current income.
Correct Answer:
Verified
Q42: (Figure: Fiscal Stimulus) The figure shows fiscal
Q43: A leakage occurs in an economy when:
A)
Q44: Which of the following provides an example
Q45: When used in connection with fiscal policy,
Q46: Which of the following terms is used
Q48: Which of the following provides an example
Q49: The idea that households spend each year
Q50: Which one of the following is NOT
Q51: A monetary offset of an expansionary fiscal
Q52: During 2013, the U.S. government used contractionary
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents