The two primary explanations for the excess volatility of consumption are
A) consumers' limited life spans and credit market imperfections.
B) credit market imperfections and changes in market prices.
C) changes in market prices and distorting taxes.
D) distorting taxes and consumers' limited life spans.
E) changes in market prices and consumer's limited life spans.
Correct Answer:
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A) optimum
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A)
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B)
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A)
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