Both the permanent-income and life-cycle hypotheses modify Keynesian consumption theory by distinguishing the effects of
A) temporary and permanent changes in disposable income.
B) changes in the disposable income of upper income and lower income classes.
C) changes in labor income and interest income.
D) small and large changes in disposable income.
A
You might also like to view...
The slope of a line with rise of five and run of two is positive.
Answer the following statement true (T) or false (F)
If a tax did not induce buyers or sellers to change their behavior, it would not cause a deadweight loss
a. True b. False Indicate whether the statement is true or false
Economists use the term ______ to refer to a situation in which the market on its own fails to produce an efficient allocation of resources
Fill in the blank(s) with correct word
Indexation is designed to
A) moderate the costs of inflation, not inflation itself. B) rapidly reduce inflation. C) reduce the natural rate of unemployment. D) rapidly reduce inflationary expectations.