The permanent-income hypothesis seeks primarily to explain the
A) observed long-term constancy of the saving ratio.
B) observed variation in the short-term saving ratio.
C) unimportance of transitory income changes.
D) All of the above are correct.
D
Economics
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Sally derives utility from consuming apples and tacos as shown in the table above. Apples cost $1 each and tacos cost $2 each. If Sally's income is $9, she will consume
A) 5 apples and 2 tacos. B) 3 apples and 3 tacos. C) 1 apple and 4 tacos. D) no apples and 4 1/2 tacos.
Economics
If a country removes a tariff on imported shoes, we expect the domestic price of shoes to _______ and the quantity of shoes consumed in the domestic market to ________ .
A) fall; fall B) fall; rise C) rise; fall D) rise; rise
Economics