2. People who prefer smooth consumption over time should a. base their consumption on current income rather

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2. People who prefer smooth consumption over time should

a. base their consumption on current income rather than lifetime resources.

b. increase saving when current income falls below permanent income.

c. save more in response to transitory increases in income.

d. consume more of a temporary tax cut than permanent ones.

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 30, 2024 08:01 AM

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2. People who prefer smooth consumption over time should a. base their consumption on current income rather

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Macroeconomics

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