Suppose a person calculates her permanent income by adaptive expectations.Last year's permanent income was 38,000,this year's actual income is 41,000,j = 0.30,and k = 0.86.What is her consumption expenditure this year?
A)30,422
B)12,174
C)40,226
D)38,774
E)33,454

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The Answer of Suppose a person calculates her permanent income by adaptive expectations.Last year's permanent income was 38,000,this year's actual income is 41,000,j = 0.30,and k = 0.86.What is her consumption expenditure this year?
A)30,422
B)12,174
C)40,226
D)38,774
E)33,454

Suppose a Person Calculates Her Permanent Income by Adaptive Expectations