The MPC on ________ income is less than the MPC on ________ income according to ________ theory.
A) transitory;permanent;Friedman's
B) transitory;permanent;Modigliani's
C) permanent;transitory;Modigliani's
D) permanent;transitory;Friedman's
Correct Answer:
Verified
Q35: The permanent-income hypothesis was developed in the
Q36: The hypothesis that individuals base consumption on
Q37: In U.S.recessions,growth in total consumption is _,which
Q38: While Modigliani's LCH is similar to Friedman's
Q39: Both the permanent-income and life-cycle hypotheses are
Q41: Suppose we are working with the simplest
Q42: By the permanent-income hypothesis,for every dollar that
Q43: The permanent-income hypothesis can reconcile the cross-section
Q44: The consumption theories proposed by Modigliani and
Q45: Suppose a person calculates his permanent income
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