According to the permanent-income hypothesis,a permanent increase in a person's income will
A) increase consumption more than savings.
B) increase savings more than consumption.
C) be smoothed out to where the increases in consumption and savings are roughly equal.
D) have the same effect on consumption as a transitory increase in income.
Correct Answer:
Verified
Q1: Household consumption as a percentage of GDP
Q3: Given a decrease in the real interest
Q4: Consumption smoothing is a consequence of the
A)
Q5: Given a decrease in the real interest
Q6: According to the permanent-income hypothesis,
A) the present
Q7: According to the life-cycle hypothesis,
A) the present
Q8: The tendency for households to consume an
Q9: According to the life-cycle hypothesis,
A) consumption during
Q10: According to the permanent-income hypothesis,a transitory increase
Q11: The intertemporal budget constraint tells us that
A)
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