The challenge for economists in the early postwar period was to develop a consumption hypothesis that could explain how
A) the saving ratio could remain fairly constant across income groups while the aggregate saving ratio increased over time as average real income grew.
B) the saving ratio for high-income families could be lower than for low-income families while the aggregate saving ratio remained fairly constant over time as average real income grew.
C) the saving ratio for high-income families could be higher than for low-income families while the aggregate saving ratio remained fairly constant over time as average real income grew.
Correct Answer:
Verified
Q20: Which of the following is NOT usually
Q21: The measure of saving in the National
Q22: The permanent-income hypothesis seeks primarily to explain
Q23: Both the PIH and the LCH predict
Q24: An individual's permanent income is
A)constant over time.
B)the
Q26: A person is calculating his permanent income
Q27: Both the permanent-income and life-cycle hypotheses modify
Q28: Which of the following purchases is most
Q29: The household saving rate as measured by
Q30: The stock market boom during the 1990s
A)boosted
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