Multiple Choice
If we compare the life-cycle theory of consumption with the permanent-income theory we can conclude that they both
A) pay careful attention to microeconomic foundations
B) agree that temporary tax cuts can be used to stimulate the economy
C) have similar theoretical bases but disagree widely in their policy implications
D) explain why large changes in current income cause large changes in current consumption
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q19: In the Fisher diagram, which gives a
Q20: What does the permanent-income theory of consumption
Q21: Robert E.Hall's theory of consumption behavior is
Q22: Hall's random walk-theory of consumption states that
Q23: If uncertainty about future income and future
Q25: A temporary tax change will significantly affect
Q26: The life-cycle theory of consumption can be
Q27: According to the simplified life-cycle theory of
Q28: The random-walk theory of consumption asserts that
Q29: There is empirical evidence for the fact