This topic contains a solution. Click here to go to the answer

Author Question: Would the Keynesian consumption function work well in a world of libertarian paternalists? What ... (Read 90 times)

Bernana

  • Hero Member
  • *****
  • Posts: 530
Would the Keynesian consumption function work well in a world of libertarian paternalists?
 
  What will be an ideal response?

Question 2

Private saving refers to ________.
 
  A) after-tax income minus consumption expenditures
  B) a flow variable which adds to the stock of wealth
  C) the private saving rate times disposable income
  D) all of the above
  E) none of the above



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

abro1885

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

If consumption behavior depends mostly on current constraints and immediate consequences, then current consumption is driven by current income, as the Keynesian consumption function says. Libertarian paternalism seeks to tighten the constraints. More effective inducements to save might lower the marginal propensity to consume, but it will be as true as ever that changes in current consumption will be driven principally by changes in current income.

Answer to Question 2

D




Bernana

  • Member
  • Posts: 530
Reply 2 on: Jun 30, 2018
Gracias!


miss_1456@hotmail.com

  • Member
  • Posts: 289
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

For a complete list of videos, visit our video library