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    Macroeconomics Study Set 67
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    Exam 9: A Two-Period Model: the Consumptionsavings Decision and Credit Markets
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    According to Friedman, a Primary Determinant of a Consumer's Current
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According to Friedman, a Primary Determinant of a Consumer's Current

Question 2

Question 2

Multiple Choice

According to Friedman, a primary determinant of a consumer's current consumption is


A) rate of expected savings in the second period.
B) temporary income.
C) current levels of GDP.
D) current employment.
E) permanent income.

Correct Answer:

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