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In our discussion of the permanent income hypothesis we categorized income as either permanent or temporary. Furthermore, we categorized people as either consumption smoothers or

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In our discussion of the permanent income hypothesis we categorized income as either permanent or temporary. Furthermore, we categorized people as either "consumption smoothers" or "hand-to-mouth." c. Using the notation below, with superscripts S and H for smoothers and hand-to- mouth consumers, write (a) mathematical statement or statements comparing these marginal propensities to consume. You may need to refer to your notes. MPCperm, MPCTemp, MPCperm, MPCTemp

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