According to the permanet income hypothesis, a person's consumption increases only when
A) the person's average lifetime income increases.
B) the person saves more.
C) the person's income increases unexpectedly.
D) the person's current income increases.
Correct Answer:
Verified
Q41: The relationship between households' planned consumption expenditures
Q42: Along a linear consumption function,
A)the average propensity
Q44: According to Keynes, an individual's level of
Q48: According to the permanent income hypothesis, a
Q53: According to Keynes, the primary determinant of
Q54: The Keynesian model is based on the
Q56: Dissaving occurs when
A)disposable income exceeds consumption.
B)disposable income
Q58: The consumption function shows the relationship
A)between households'
Q58: Suppose that when disposable income decreases by
Q59: Which of the following is true?
A) MPC
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