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QUESTION 4 Which of the following empirical ndings suggest that individuals in the US. smooth consumption? A. an average American's income goes up and then
QUESTION 4 Which of the following empirical ndings suggest that individuals in the US. smooth consumption? A. an average American's income goes up and then down over the life cycle, while their consumption does not change B. for an average American, the magnitude of income growth and decline over the life cycle exceeds the magnitude of consumption growth and decline C. American's increased their consumption after receiving stimulus checks in 2008 D. the real income of a median worker has barely increased since the 19803 QUESTION 5 What accounts for the difference between gross and net investment? A. depreciation B. depopulation C. net exports D. government spending QUESTION 6 Which of the following statements is false? A. investment uctuates more over the business cycle than consumption B. investment uctuates more over the business cycle than GDP C. investment uctuates less over the business cycle than consumption D. investment increases during booms and falls during recessions
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