Multiple Choice
Suppose consumers anticipate that their wealth will grow over time,because of interest earnings and capital gains.According to the life-cycle hypothesis,such optimism should cause current consumption to be ________.
A) relatively low
B) relatively insensitive to changes in income
C) rising as individuals near retirement age
D) relatively high
Correct Answer:
Verified
Correct Answer:
Verified
Q67: The theory of intertemporal choice,and the life-cycle
Q68: If an indifference curve intersects the budget
Q69: The theory of intertemporal choice was presented
Q70: The Keynesian consumption function does not display
Q71: Consumption smoothing refers to _.<br>A)the impact of
Q73: The marginal propensity to consume describes _.<br>A)the
Q74: Use the intertemporal budget constraint - equation
Q75: An intertemporal budget constraint _.<br>A)describes how much
Q76: In practice,it is usual to assume that,in
Q77: In the permanent income hypothesis,income is divided