Government intervention is necessary to correct all externalities

Your textbook authors argue that, other things constant, entrepreneurs respond to a fall in interest rates by

A) paying less attention to long term profitability. B) engaging in irrational business behavior. C) investing in capital goods. D) making all of the above choices.

In the permanent income hypothesis, income is divided into ________

A) current and future income B) future and transitory income C) transitory and permanent income D) permanent and current income