The Keynesian consumption function and the theory of intertemporal choice are consistent for households ________
A) with a binding budget constraint
B) with little or no initial wealth
C) whose consumption remains positive, even if income is zero
D) whose consumption cannot exceed current income
D
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What explains the nearly universal scope of the Great Depression?
What will be an ideal response?
Banks have responded to new regulations resulting from the Dodd-Frank Act in all of the following ways EXCEPT:
A) raising minimum balances on free checking accounts B) closing branches in low-income neighborhoods C) raising overdraft fees D) increased marketing of securities and financial advice to high-income customers
Discuss the following:
(i) Discuss the impact of the substitution effect on a wage increase. (ii) Discuss the impact of the income effect on a wage increase. (iii) Based on these two effects, how does a wage increase affect the supply of labor?
What would happen in the market for loanable funds if the government were to increase the tax on interest income?
a. The supply of loanable funds would shift right. b. The demand for loanable funds would shift right. c. The supply of loanable funds would shift left. d. The demand for loanable funds would shift left.