If consumers are very foresighted,we would expect actual consumption spending to

Question

Quizplus · Accepted Answer

Foresighted consumers adjust their consumption based on expected future income and economic conditions, leading to consumption patterns that may not closely follow current economic fluctuations. This behavior can make consumption appear as a "random walk," where changes are unpredictable and based on new information rather than current economic conditions alone.

If Consumers Are Very Foresighted,we Would Expect Actual Consumption Spending