The permanent income hypothesis is consitent with cross-section and time-series data becausea. higer-income households are savers, since their current income includes positive transistory conponents.O b. higer-income households are savers, since their current income includes negative transistory conponents.c. lower-income households are dissavers, since their current income includes positive transistory components.O d. lower-income households are savers, since their current income includes negative transistory conponents.

The answer to the question is:a. Higher-income households are savers, since their current income…

Answered: The permanent income hypothesis is…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 18P

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9. The individual's budget line (in the neo-classical consumption - leisure choice model) switches from BL₁ to BL2 (note that they are not parallel). What change(s) could have caused this? с BL 2 BL1 T O an increase in non-labor income only. O a decrease in the wage only. K O an increase in both the wage and non-labor income. O an increase in the wage only. l O a decrease in the wage, but an increase in non-labor income.
8. The individual's budget line (in the neo-classical consumption - leisure choice model) switches from BL₁ to BL2. What change(s) could have caused this? C BL₁ BL 2 a decrease in the wage only. T l O an increase in the wage only. O an increase in non-labor income only. O an increase in both the wage and non-labor income. O a decrease in the wage, but an increase in non-labor income.
A decrease in people's disposable income OA. increases investment demand. B. increases consumption. OC. decreases saving. O D. increases saving and decrease consumption. OE. increases saving. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.
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Clear my choice The present worth of an arithmetic gradient will always be located: Select one: O a. the same period with gradient. O b. 5 periods before the future value. OC one period before the gradient starts. O d. two periods before the gradient starts.
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OC 7.5%. O D. 6.67%. O E. -3%. QUESTION 20 Suppose that a simple economy produces only the goods and services shown in the table. Assume all of the strawberries are used in the production of strawberry jam. Using the information in the table, nominal GDP for this simple economy equals Product Quantity Price Strawberries 250 $1.00 Strawberry jam 30 4.00 Second hand cars 10 950.00 Tablets 85 210.00 Shirts 60 18.00 O A. $19,300. O B. $19,050. OC. $28,800. O D. $28,550, O E. 435 units. Click Save and Submit to save and submít. Click Save All Answers to save all ansuwers.
The following data give the dates of successive turning points in economic activity and the corresponding levels of real GDP at the time: Turning Point Date Feb. 1961 Dec. 1969 Nov. 1970 Nov. 1973 Mar. 1975 Real GDP (1996 S billions) 2352.9 3571.4 3566.5 4151.1 4010.0 Which of the following periods is an expansion? Select one: O a. November 1970 through March 1975 O b. December 1969 through November 1973 O c February 1961 through December 1969 O d. December 1969 through November 1970

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