According to the life-cycle hypothesis, as consumers get older ________
A) the marginal propensity to consume out of wealth and income rise
B) the marginal propensity to consume out of wealth falls and the marginal propensity to consume out of income rises
C) the marginal propensity to consume out of wealth rises and the marginal propensity to consume out of income falls
D) the marginal propensity to consume out of wealth and income fall
C
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The textbook cautions against speaking of "the people" as wanting a particular good
A) because it is not clear in what sense groups as distinct from individuals can ever have wants. B) because people rarely know what they themselves really want. C) because the wants of the people are relevant only in a democracy. D) because assertions about "the people" confuse economics with politics. E) unless the majority has clearly voted for it.
The ________ measure of money contains items that are not direct media of exchange, such as ________
A) M1, checkable deposits B) M1, savings certificates C) M2, checkable deposits D) M2, savings certificates