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Explain the permanent income hypothesis of consumption and assess its criticisms. (11 marks) (3 marks) (3 marks) (3 marks) Explain the 'Ratchet effect' in
Explain the permanent income hypothesis of consumption and assess its criticisms. (11 marks) (3 marks) (3 marks) (3 marks) Explain the 'Ratchet effect' in consumption behavior. Explain the limitations of accelerator theory of investment. Identify the criticisms of the relative income hypothesis
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Consumption Permanent Income Hypothesis PIH According to the Permanent Income Hypothesis PIH rather than their perceived shortterm or temporary income people should guide their consumption decisions b...
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Exploring Economics
Authors: Robert L Sexton
5th Edition
978-1439040249, 1439040249
