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A. What is Milton Friedman's permanent income hypothesis? .B. Do you agree that when businesses have favorable expectations re expected rate of return or expected

A. What is Milton Friedman's "permanent income hypothesis"?

.B. Do you agree that when businesses have favorable expectations re expected rate of return or expected net profit, they will increase Ig or business spending? Explain your response. What is meant by expected rate of return?

C. What else influences the expected rate of return besides the real interest rate or cost of borrowing

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