Multiple Choice
The idea that a permanent increase in income causes a larger increase in consumption than a temporary change in income is called the
A) Friedman-Lucas theory.
B) permanent income hypothesis.
C) Ricardian equivalence theorem.
D) intertemporal substitution effect.
E) steady state theorem.
Correct Answer:
Verified
Correct Answer:
Verified
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Q60: The property of diminishing marginal rate of
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