According to the permanent income hypothesis, a temporary and relatively small increase in income would
A. cause an increase in consumption and saving by the same amount.
B. cause a decrease in consumption and saving by the same amount.
C. cause no change in consumption.
D. cause a large increase in consumption.
Answer: C
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The exchange rate states the price, in terms of one currency at which another currency can be bought.
Answer the following statement true (T) or false (F)
Nonparticipants in the labor force include those who are classified as unemployed
Indicate whether the statement is true or false
The goal of a union may be to maximize the
a. number of union members. b. income received by workers in the relevant industry. c. number of workers employed in the relevant industry. d. All of the above are correct.
Exhibit 10-3 A monopolistic competitive firm in the long run
As presented in Exhibit 10-3, the long-run profit-maximizing output for the monopolistic competitive firm is:
A. zero units per week. B. 200 units per week. C. 400 units per week. D. 600 units per week.