The permanent income hypothesis is associated with
a. John M. Keynes
b. James Duesenberry
c. Franco Modigliani
d. Adam Smith
e. Milton Friedman
E
You might also like to view...
If C + I = Y and Y - C = S, then
A) I = 0. B) S = 0. C) S = I. D) Y = S + I.
Which of the following would not be included in the government consumption expenditures and gross investment (G) category of GDP?
a. The payments made to Social Security recipients. b. The expenditures made to repair a highway. c. The spending for professors at state universities. d. The purchase of new china for White House functions.
The functioning of a market economy is very dependent upon investment for provision of capital and future growth. Describe the process of investment and employment of the created capital in production
The productivity curve of the country Britania is given to be P. Currently the combination of physical capital per worker and real GDP per worker of Britania is at point A on the productivity curve. There are two other countries in the region, Zstan and Kryptan. These countries are similar to Britania in many aspects including technology, the level of education of the workforce and the supply of natural resources. However, Zstan has a higher savings rate than Britania while Kryptan has a lower savings rate.
What will be an ideal response?