Multiple Choice
According to the permanent-income theory of consumption
A) permanent income is always lower than transitory income
B) the mpc out permanent income is close to zero
C) the mpc out of transitory income is close to 1
D) all of the above
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Assume the government announces an income tax
Q4: The fact that consumption exhibits "excess sensitivity"
Q5: The random-walk theory of consumption predicts that<br>A)the
Q6: The life-cycle theory of consumption implies that<br>A)the
Q7: Liquidity constraints explain<br>A)why consumers may spend less
Q9: The debate about different consumption theories can
Q10: The Barro-Ricardo equivalence proposition<br>A)states that debt-financing merely
Q11: The Barro-Ricardo equivalence proposition implies that tax
Q12: The proposition that financing debt by issuing
Q13: Empirical studies of aggregate consumption have shown