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An Increase in Income in Period One in Irving Fisher's

Question 62

Multiple Choice

An increase in income in period one in Irving Fisher's two-period consumption model increases consumption in:


A) period one, but decreases consumption in period two.
B) period one, but does not change consumption in period two.
C) both periods one and two, as long as consumption in period one and consumption in period two are both normal goods.
D) period two, but does not change consumption in period one.

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