Multiple Choice
The permanent-income theory of consumption implies that
A) the short-run multiplier is smaller than the long-run multiplier
B) the short-run multiplier is larger than the long-run multiplier
C) the short-run multiplier is identical to the long-run multiplier
D) the long-run multiplier is equal to 1
E) the short-run multiplier is less than 1
Correct Answer:
Verified
Correct Answer:
Verified
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