Explain why the marginal propensity to consume out of transitory income is different from the marginal propensity

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Explain why the marginal propensity to consume out of transitory income is different from the marginal propensity to consume out of permanent income.

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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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Question Posted: Feb 04, 2016 07:00 AM

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Explain why the marginal propensity to consume out of transitory income is different from the marginal propensity

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Consumers wish to smooth consumption over their lifet...View the full answer

Macroeconomics

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