This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: According to the life-cycle hypothesis, A) the present value of lifetime consumption equals the ... (Read 82 times)

newbem

  • Hero Member
  • *****
  • Posts: 579
on: Jun 30, 2018
According to the life-cycle hypothesis,
 
  A) the present value of lifetime consumption equals the future value of lifetime income.
  B) the income earned in a lifetime will be evenly divided between consumption and saving.
  C) household consumption depends on income that households expect to receive each year, and financial markets are used to smooth consumption in response to changes in transitory income.
  D) households use financial markets to transfer funds from periods when income is high to periods when income is low.

Question 2

Refer to Figure 9.1. Assume the economy is initially at point A. The initial change resulting from a recession caused by an increase in oil prices is best represented by which short-run equilibrium combination of price level and real GDP?
 
  A) P2; Y2
  B) P3; Y3
  C) P2; Y3
  D) P3; Y2


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mbcrismon

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

C


newbem

  • Hero Member
  • *****
  • Posts: 579
Reply #2 on: Jun 30, 2018
Thank you


mbcrismon

  • Sr. Member
  • ****
  • Posts: 328
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Zygotic life cycle, illustrated by the unicellular flagellate genus Chlamydomonas Zygotic life cycle, illustrated by the unicellular flagellate genus Chlamydomonas
The life cycle of the genus Pinus The life cycle of the genus Pinus
Life cycle of Coccidioides immitis. Life cycle of Coccidioides immitis.
Events of the cardiac cycle Events of the cardiac cycle
How the multiple-factor hypothesis accounts for the 1:4:6:4:1 phenotypic ratio How the multiple-factor hypothesis accounts for the 1:4:6:4:1 phenotypic ratio
Life cycle of the beef tapeworm (Taenia saginata). Life cycle of the beef tapeworm (Taenia saginata).
Video: Dissociative Disorders (Part 3)

For a complete list of videos, visit our video library