The difference between income and consumption is

Both the permanent-income and life-cycle hypotheses are based on the crucial assumption of ________ expectations

A) rational B) adaptive C) backward-looking D) forward-looking

Which of the following will shift the aggregate demand curve to the right, ceteris paribus?

A) an increase in interest rates B) a decrease in disposable income C) a decrease in expected profits for firms D) an increase in net exports