Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 13, 2020

2) Explain life-cycle and permenant income theories briefly.

Step by Step Solution

★★★★★

3.36 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

Life Cycle Hypothesis Lifecycle hypothesis abbreviated as LCH is a model that explains the consumption patterns of individuals over their lifeIt suggests that each person plan their consumptions and s... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Managerial Finance

Authors: Lawrence J. Gitman, Chad J. Zutter

13th Edition

9780132738729, 136119468, 132738724, 978-0136119463

More Books

Students also viewed these Economics questions

Question

Explain Life Cycle and sustainability assessment of particular coal power plant with carbon capture and storage.

Answered: 1 week ago

Question

★★★★★

Briefly define the product life cycle and identify the life phases the product experiences.

Answered: 1 week ago

Question

★★★★★

Briefly explain the impact on a companys C2C cycle if they experienced: An increase in accounts payable turnover An increase weeks payable An increase in weeks receivable An increase in weeks in...

Answered: 1 week ago

Question

★★★★★

Consider the pistoncylinder arrangement shown in the sketch below. The gas forces on each side of the piston, assuming there are no frictional forces at the pistoncylinder interface, balance the...

Answered: 1 week ago

Question

★★★★★

(a) Construct the incidence matrix A for the disconnected digraph D in the figure. (b) Verify that dim ker A = 3, which is the same as the number of connected components, meaning the maximal...

Answered: 1 week ago

Question

★★★★★

47. In your library, find the percentage of the vote that Bill Clinton received in each state in the 1996 presidential election. a) Prepare a stein and leaf plot. Are there any apparent oudiers? b)...

Answered: 1 week ago

Question

★★★★★

Table 10.22 contains summary information on the fit of the best two logistic regression models based on a sample of ???? = 313 observations for models including ???? = 1, 2,, 7 explanatory variables....

Answered: 1 week ago

Question

★★★★★

During the audit of a major client, you notice that revenues have increased dramatically from the third to the fourth quarter and especially over the previous periods of last year. Youve received...

Answered: 1 week ago

Question

★★★★★

The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2 0 2 2 at $ 9 0 0 , 0 0 0 . The only variable costs budgeted for the...

Answered: 1 week ago

Question

★★★★★

Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations. May 1 G. Gram invested $40,000...

Answered: 1 week ago

Question

★★★★★

Instructions: You have been assigned to design and develop a web-based system for a startup company that provides a platform for local farmers to sell their products online. The company wants a...

Answered: 1 week ago

Question

★★★★★

1. Your friend asks you to invest $10,000 in a business venture. Based on your estimates, you would receive nothing for four years, at the end of year 5 you would receive interest on the investment...

Answered: 1 week ago

Question

★★★★★

1 ) A global contracting organisation suffers from different types of organisational conflicts internally and within its clients and supply chain. You are appointed as a consultant to advise senior...

Answered: 1 week ago

Question

★★★★★

Jose own a small retail store and hires Sam as his agent to manage the store while he is away on vacation. Jose instructs Sam to only sell items at a 10% discount. However, Sam mistakenly sells a...

Answered: 1 week ago

Question

★★★★★

In South Africa, while excessive, deadly, or lethal use of force tends to be associated more often with the SAPS, private security officers have also been guilty of such activities. This connotation...

Answered: 1 week ago

Question

★★★★★

7) Bright Semiconductor specializes in semiconductors that are used in autos, communication equipment, and industrial machinery, which are cyclical industries. This high-yield-rated company's debt...

Answered: 1 week ago

Question

★★★★★

Bev's Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another...

Answered: 1 week ago

Question

★★★★★

What are three disadvantages of using the direct write-off method?

Answered: 1 week ago

Question

★★★★★

Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and nonquantitative factors best predict bond defaults. Furthermore, some of the raters...

Answered: 1 week ago

Question

★★★★★

Find the book value for each of the assets shown in the accompanying table, assuming that MACRS depreciation is beingused. Rccovery Elapsed time since purchase (ycars) Installed cost (ycars) S...

Answered: 1 week ago

Question

★★★★★

What three areas of analysis are combined in the modified DuPont formula? Explain how the DuPont system of analysis is used to dissect the firms results and isolate their causes.

Answered: 1 week ago

Question

★★★★★

A $1000 investment is made today. Calculate its maturity values for the six combinations of terms and annually compounded rates of return in the following table.

Answered: 1 week ago

Question

★★★★★

Nelson borrowed $5000 for 4 years. For the first 2 years, the interest rate on the loan was 8.4% compounded monthly. Then the rate became 7.5% compounded semiannually. What total amount was...

Answered: 1 week ago

Question

★★★★★

How much more will an investment of $10,000 be worth after 25 years if it earns 6% compounded annually instead of 5% compounded annually? Calculate the difference in dollars and as a percentage of...

Answered: 1 week ago

Previous Question Next Question