According to the permanent income hypothesis, when income rises ...

[Awilson837]

According to the permanent income hypothesis, when income rises above the permanent income level, the household saves at a lower rate than the long-run MPS.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

The opportunity cost of an action is equal to:
 a. only the monetary payment the action required.
 b. the total time spent by all parties in carrying out the action.
 c. the highest valued opportunity that must be sacrificed in order to take the action.
  d. the value of all of the alternative actions that could have been taken.

[katheyjon]

Answer to Question 1

False

Answer to Question 2

c

[Awilson837]

Thank you

[katheyjon]

No problemo