According to Friedman's "permanent income hypothesis,"
A. Consumption today is based on income today.
B. Consumption for future periods is based on today's income.
C. Income is never permanent because of the government's ability to tax.
D. Consumption depends on a person's expected income stream over time.
D. Consumption depends on a person's expected income stream over time.
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If a tax is placed on the production of good X, this will shift the
A. demand curve for X to the left. B. demand curve for X to the right. C. supply curve for X to the left. D. supply curve for X to the right.
Mel's utility of wealth is 130 units at $3,000, 160 units at $5,000, and 190 units at $9,000. Starting from zero wealth, he must choose between options A and B
Option A gives him $5,000 for sure. Option B gives him $3,000 with probability 0.4 or $9,000 with probability 0.6. Mel A) will choose A. B) will choose B. C) is indifferent between A and B. D) needs more information to make a choice.
Recycling in the United States in recent years
a. has decreased in spite of increased rates for common recycling materials. b. has remained unchanged, and increased raes for recycling may help. c. has increased with increased rates for recycling mterials. d. has increased with no help from increased fees for recycling materials.
Based on the graph showing the market for loanable funds, at a real interest rate that is higher than equilibrium, the quantity of loanable funds supplied is ______.
a. equal to the quantity of loanable funds demanded
b. less than the quantity of loanable funds demanded
c. greater than the quantity of loanable funds demanded
d. closer to the quantity of loanable funds demanded than at equilibrium