The permanent-income hypothesis can reconcile the cross-section and time-series consumption studies by incorporating the reasonable assumption that at any one time many people are rich because they are enjoying unusually high ________ income, causing
them to have an unusually ________ saving ratio. A) permanent, high
B) permanent, low
C) transitory, high
D) transitory, low
C
You might also like to view...
The graph illustrates the market for computers. If the number of buyers of computers increases and technology advances, you predict that the
A) equilibrium price of a computer will fall. B) equilibrium quantity of computers might increase, decrease, or not change. C) equilibrium price of a computer will rise. D) equilibrium quantity of computers will decrease. E) equilibrium quantity of computers will increase.
The goal of "personalized pricing" is to determine how much each individual customer is willing to pay for a product. As such, it is an application of first-degree price discrimination
Indicate whether the statement is true or false
Fiscal policy involves ________
A) taxes and government spending B) setting interest rates C) controlling the amount of money in the economy D) all of the above E) none of the above
A price ceiling is
A. the lowest price a buyer can pay for a good without having to report the purchase to the government. B. a legal maximum price that can be charged for a particular good or service. C. the lowest price a seller can charge for a good without losing all her customers. D. a legal minimum price that can be charged for a particular good or service.