Which of the following theories predicts that current consumption increases when a person expects an increase in future income?
A) the life-cycle theory of consumption B) the Keynesian theory of consumption
C) the permanent income hypothesis D) all of the above
D
Economics
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______________: Using right methods of production
Fill in the blank(s) with the appropriate word(s).
Economics
The difference between the highest price a consumer is willing to pay for a good and the price the consumer actually pays is called
A) consumer surplus. B) the income effect. C) producer surplus. D) the substitution effect.
Economics