According to the permanent-income hypothesis, a permanent increase in a person's income will
A) increase consumption more than savings.
B) increase savings more than consumption.
C) be smoothed out to where the increases in consumption and savings are roughly equal.
D) have the same effect on consumption as a transitory increase in income.
A
Economics
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The actual money multiplier multiplied by the change in total reserves is the
A) actual change in the money supply. B) potential money multiplier. C) federal funds rate. D) discount rate.
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A surprising outcome of the Rock-Paper-Scissors game is that
A) it is a clear example of a first mover advantage. B) there is no pure-strategy Nash equilibrium. C) it is best not to play the game. D) it is a good way to determine who goes first in a sequential move game.
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