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Author Question: If households come to believe that permanent income has not changed ________. A) the impact of a ... (Read 11 times)

nmorano1

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on: Jun 30, 2018
If households come to believe that permanent income has not changed ________.
 
  A) the impact of a change in taxes on spending will be limited
  B) they will consume on the basis of their current income
  C) their life-cycle will be affected
  D) the impact of a given change in taxes on spending will be enhanced

Question 2

In the coordination failure model, the good equilibrium is characterized by a
 
  A) higher real interest rate and a higher price level than the bad equilibrium.
  B) higher real interest rate and a lower price level than the bad equilibrium.
  C) lower real interest rate and a higher price level than the bad equilibrium.
  D) lower real interest rate and a lower price level than the bad equilibrium.


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ebenov

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

D


nmorano1

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

tanna.moeller

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Reply 3 on: Yesterday
Wow, this really help

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