Modigliani's consumption function differs from both Friedman's and Keynes' function in which of the following?
A) It is based on forward looking expectations.
B) It is based on disposable income received over time.
C) It is based on the value of assets accumulated over time.
D) It is based on disposable income or permanent income.
C
You might also like to view...
The productivity curve shifts upward when
A) technology advances. B) physical capital increases. C) hours of labor increase. D) hours of labor decrease. E) human capital decreases.
Other things remaining the same, the higher the current exchange rate, the larger is the expected profit from buying dollars
Indicate whether the statement is true or false
In an IS-LM model with an upward-sloping LM curve and a downward-sloping IS, how does the expenditure multiplier compare to [1/(1-b)]?
A) It is equal to it. B) It is greater. C) It is smaller. D) Cannot be answered with the information given.
A limitation one faces when shopping for clothes is the amount of time available to shop
a. True b. False Indicate whether the statement is true or false