An economist believes that the consumption patterns of a household can be determined by using the equation
Question:
An economist believes that the consumption patterns of a household can be determined by using the equation C = a + bI, where I is the income, a denotes a positive number, and b a percentage.
a. Is the economist using a model?
b. How would you test this?
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Related Book For
3E Economics
ISBN: 9781292411019
3rd Global Edition
Authors: Daron Acemoglu, David Laibson , John List
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