Question
What is meant by the phraseconsumption smoothing and why is it akey element of the life-cycle hypothesis and the permanent-income hypothesis? Suppose that the evidence
What is meant by the phrase"consumption smoothing" and why is it akey element of the life-cycle hypothesis and the permanent-income hypothesis?
Suppose that the evidence from an econometric analysis suggest that consumption changes by more or less than the change in permanent income. What would this mean? Discuss.
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Foundations of Business
Authors: William M. Pride, Robert J. Hughes, Jack R. Kapoor
6th edition
1337386928, 9781337670975 , 978-1337386920
