Author Question: According to the permanent income hypothesis, consumption spending depends largely on ________. ... (Read 74 times)

urbanoutfitters · **on:** Jun 30, 2018

According to the permanent income hypothesis, consumption spending depends largely on ________.

A) current income
B) the savings rate
C) a consumer's lifetime resources
D) the level of current income plus the value of the assets owned by the household

Question 2

Even when measured accurately, GDP may be a misleading measure of economic welfare because it cannot account for

A) the value of government spending and how efficiently we produce goods and services.
B) how efficiently we produce goods and services and the value of non-market production.
C) the value of non-market production and the consequences of an unequal distribution of income.
D) the consequences of an unequal distribution of income and the value of government spending.