In January 2017, a report from the National Retail Federation said that “Holiday retail sales during November and December increased 4 percent over 2015 to $658.3 billion.” The NRF’s chief economist “noted that average hourly earnings were up in 2016 over 2015 … home values have also increased and the rising stock market has increased the value of consumers’ investments.” Which models of consumption behavior was the economist referring to? Precautionary savings model and Friedman’s permanent income model Keynesian consumption model and Modigliani’s life cycle model. Inventory cycle model and Modigliani’s life cycle model. Keynesian consumption model and precautionary savings model.

In January 2017, a report from the National Retail Federation said that “Holiday retail sales during November and December increased 4 percent over 2015 to $658.3 billion.” The NRF’s chief economist “noted that average hourly earnings were up in 2016 over 2015 … home values have also increased and the rising stock market has increased the value of consumers’ investments.” Which models of consumption behavior was the economist referring to? Precautionary savings model and Friedman’s permanent income model Keynesian consumption model and Modigliani’s life cycle model. Inventory cycle model and Modigliani’s life cycle model. Keynesian consumption model and precautionary savings model.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter18: The Keynesian Model

Section: Chapter Questions

Problem 6SQP

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