Consumption Function: Formula, Assumptions, and Implications
Consumption Function: Formula, Assumptions, and Implications
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Consumption Function | Importance, Formulas & Examples
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consumption is a function of current disposal income discuss the statement
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The permanent-income theory of consumption: According to the permanentincome hypothesis, how does your consumption change in each of the following scenarios? (The first question is answered for you.) To keep things simple, suppose the interest rate is 10 % and you will live forever. Feel free to give answers that involve approximations. (a) A distant aunt that you never knew dies and leaves you 100,000 in her will. (Answer: Consumption rises today and in the future by a constant amount, equal t
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