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Author Question: The life cycle and permanent income theories of consumption share which of the following features? ... (Read 103 times)

Mollykgkg

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The life cycle and permanent income theories of consumption share which of the following features?
 
  A) Consumption spending depends on income, rather than wealth.
  B) Consumption spending should fluctuate widely from year to year.
  C) Consumers look ahead to the future in making current spending decisions.
  D) all of the above
  E) none of the above

Question 2

Based on our understanding of the IS-LM model that takes into account dynamics, we know that an increase in government spending will cause
 
  A) a gradual increase in i and gradual increase in Y.
  B) an immediate increase in Y and immediate drop in i.
  C) an immediate increase in i and no initial change in Y.
  D) a gradual increase in i and an immediate increase in Y.



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matt

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Answer to Question 1

C

Answer to Question 2

A




Mollykgkg

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)


shewald78

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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