Author Question: According to the life-cycle hypothesis ________. A) households consume on the basis of their ... (Read 16 times)

Evvie72 · **on:** Jun 30, 2018

According to the life-cycle hypothesis ________.

A) households consume on the basis of their current income and liabilities
B) household consumption as a percentage of income varies over one's lifetime
C) current income is a function of future income
D) cycling to work everyday allows one to live a longer life

Question 2

The Vuvuza Corporation currently has 10 million shares of stock outstanding, the stock is trading for 42 per share, and its stock of capital goods is valued at 70 million. The Tobin's q value for the Vuvuza Corporation is

A) 0.14.
B) 1.7.
C) 6.
D) 7.