Both the LCH and the PIH predict that the marginal propensity to consume out of transitory income

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Both the LCH and the PIH predict that the marginal propensity to consume out of transitory income is quite small (perhaps, even zero). Nevertheless, we observe many younger families spending a fairly large percentage of their transitory incomes. Is this observation consistent with the two hypotheses?
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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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