Multiple Choice
According to the permanent-income theory of consumption, a person whose income fluctuates widely from year to year will have
A) a higher apc in high-income years than in low-income years
B) a lower apc in high-income years than in low-income years
C) a consistently high apc year after year
D) a consistently low apc year after year
E) an apc that is equal to 1
Correct Answer:
Verified
Correct Answer:
Verified
Q40: Assume you unexpectedly inherit $20,000.Which of the
Q41: Actual consumption behavior exhibits both "excess smoothness"
Q42: In 1968, President Johnson and Congress implemented
Q43: The permanent-income theory of consumption implies that<br>A)the
Q44: The sensitivity of current consumption to changes
Q45: According to the life-cycle theory of consumption,
Q46: Assume you define your permanent income as
Q47: The permanent-income theory of consumption asserts that
Q49: The long-run marginal propensity to consume (mpc)
Q50: According to the life-cycle theory of consumption,