The permanent-income hypothesis was developed in the 1950s by economist
A) Edward Prescott.
B) James Tobin.
C) Robert Solow.
D) Milton Friedman.
Correct Answer:
Verified
Q30: The stock market boom during the 1990s
A)boosted
Q31: The PIH predicts that temporary tax cuts
Q32: Time-series studies of consumption reveal that
A)the long-term
Q33: Friedman measured "permanent" income by assuming that
Q34: The apparent conflict between the time-series and
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
Q40: The MPC on _ income is less
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