The permanent-income hypothesis can reconcile the cross-section and time-series consumption studies by incorporating the reasonable assumption that at any one time many people are poor because they have ________ transitory income,causing them to have an unusually ________ saving ratio.
A)positive,high
B)positive,low
C)negative,high
D)negative,low

Question

Quizplus · Accepted Answer

The Answer of The permanent-income hypothesis can reconcile the cross-section and time-series consumption studies by incorporating the reasonable assumption that at any one time many people are poor because they have ________ transitory income,causing them to have an unusually ________ saving ratio.
A)positive,high
B)positive,low
C)negative,high
D)negative,low

The Permanent-Income Hypothesis Can Reconcile the Cross-Section and Time-Series Consumption