Question 1
Holding everything else constant, the less wealth a household has
◦ the less it will consume, both now and in the future.
◦ the more it will consume now, but the less it will consume in the future.
◦ the less it will consume now, but the more it will consume in the future.
◦ the more it will consume, both now and in the future.
Question 2
An inheritance is an example of ________ income.
◦ invisible
◦ hourly
◦ nonlabor
◦ non-disposable