According to Friedman's "permanent income hypothesis,"
A) Consumption today is based on income today.
B) Consumption for future periods is based on today's income.
C) Income is never permanent because of the government's ability to tax.
D) Consumption depends on our expected income stream over time.
E) Income today depends on our expected consumption over timE.
Correct Answer:
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Q101: If the APS is -0.4,the APC is
A)-0.6.
B)-0.4.
C)0.
D)0.6.
E)1.4.
Q104: If the APC is 1.1,the APS is
A)-0.1.
B)0.
C)0.1.
D)0.9.
Q105: If the APC is 1.3,the APS is
A)-0.3.
B)0.
C)0.3.
D)0.7.
Q107: If the APS is .2,we save
A)2 percent
Q108: If the APS is -0.2,the APC is
A)-0.8.
B)0.
C)0.2.
D)0.8.
E)1.2.
Q110: Which statement is true?
A)Saving can never be
Q111: An increase in interest rates results in
A)increased
Q112: Statement I.APC + APS = 1.
Statement II.MPC
Q113: When the APC is greater than one,
A)the
Q116: If the APC is .6,we consume
A)4 percent
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