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    Macroeconomics Study Set 30
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    Exam 16: Consumption
  5. Question
    If\(\beta ( 1 + R ) < 1\) , Then: A) Consumption Growth Is Negative B) You Began
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If β(1+R)<1\beta ( 1 + R ) < 1β(1+R)<1 , Then:
A) Consumption Growth Is Negative
B) You Began

Question 73

Question 73

Multiple Choice

If β(1+R) <1\beta ( 1 + R ) < 1β(1+R) <1 , then:


A) consumption growth is negative
B) you began to do precautionary saving
C) permanent income is constant
D) you save more
E) wealth declines

Correct Answer:

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