According to the permanent income hypothesis, consumption spending depends largely on ________
A) current income
B) the savings rate
C) a consumer's lifetime resources
D) the level of current income plus the value of the assets owned by the household
C
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The adverse selection problem is most likely in which of the following occupations?
a. waiter/waitress b. barber c. college professor d. supermarket cashier e. tightrope walker
The money supply in Muckland is $100 billion. Nominal GDP is $800 billion and real GDP is $200 billion. What are the price level and velocity in Muckland?
a. The price level and velocity are both 8. b. The price level is 2 and velocity is 8. c. The price level and velocity are both 4. d. The price level is 4 and velocity is 8.
Opportunity cost is the expected value of the alternative not chosen.
a. true b. false
The exchange efficiency condition holds:
A. if every pair of individuals has inverse marginal rates of substitution for every pair of goods. B. if every pair of individuals shares the same marginal rate of substitution for every pair of goods. C. if every pair of individuals consumes the same quantities of every pair of goods. D. if every pair of individuals have the same level of utility.