The idea that poor people consume a higher percentage of their income than the rich is a logical conclusion drawn from
a. Keynes's absolute income hypothesis
b. Duesenberry's relative income hypothesis
c. Friedman's permanent income hypothesis
d. the life-cycle hypothesis of consumption
e. the consumption function
A
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Consider a world with two countries and two goods. Under which of the following conditions does comparative advantage NOT exist?
A) One country can produce both goods more cheaply than the other country. B) One country has more productive resources or inputs than another country. C) The opportunity cost of producing each good is the same in each country. D) One country has an absolute advantage in producing one good while the other country has an absolute advantage in producing the other good.
The principal econometric techniques used in measuring demand relationships are:
a. the standard deviation b. regression c. correlation analysis d. the coefficient of determination e. both b and c