(a)Demonstrate graphically and explain the implications of the permanent income hypothesis on the multiplier model.
(b)How do changes in autonomous expenditures affect the change in income in this case?

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The Answer of (a)Demonstrate graphically and explain the implications of the permanent income hypothesis on the multiplier model.
(b)How do changes in autonomous expenditures affect the change in income in this case?

(A)Demonstrate Graphically and Explain the Implications of the Permanent Income