In Modigliani's life-cycle hypothesis, nearing or in retirement, a person's MPC tends to fall
Indicate whether the statement is true or false
F
You might also like to view...
Using the GG-LL framework, analyze the effect of an increase in the size and frequency of sudden shifts in the demand for a country's exports
What will be an ideal response?
If the price of one good increases while the price of the other good and the consumer's income remain unchanged, what will happen to the budget line?
A) The budget line rotates inward from the intercept on the axis of the good that did not change in price. B) The budget line rotates outward from the intercept on the axis of the good that did not change in price. C) The budget line shifts inward without a change in slope. D) The budget line shifts outward without a change in slope.
If the economy is represented in the graph shown and is currently at point E2, which action is the Fed most likely to undertake?
A. Expansionary monetary policy, because it will shift AD to the right.
B. Contractionary monetary policy, because it will shift AD to the left.
C. Expansionary monetary policy, because it will shift AD to the left.
D. Contractionary monetary policy, because it will shift AS to the right.
In responding to the Phillips curve hypothesis, Friedman argued that the Fed can peg the
a. unemployment rate. b. inflation rate. c. growth rate of real national income. d. All of the above are correct.