How did Milton Friedman define permanent income?
a) The present value of an individual's past incomes.
b) The present value of an individual's future stream of income.
c) The future value of an individual's past incomes.
d) The future value of an individual's future stream of income.
Ans: b) The present value of an individual's future stream of income.
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A portfolio is a
A) brokerage house specializing in the trading of common stock. B) brokerage house specializing in the trading of corporate bonds. C) measure of the risk involved with a holding a particular asset. D) collection of assets.
Under a transferable emissions permit system,
A) the firms with the lowest marginal abatement cost curves will reduce emissions most. B) the firms with the highest marginal abatement cost curves will reduce emissions most. C) the firms with the lowest marginal social cost curves will reduce emissions most. D) the firms with the highest marginal social cost curves will reduce emissions most. E) all firms will reduce emissions equally.