Consumption is an important element of aggregate demand because it
A) is the most volatile component of GDP
B) accounts for roughly 70 percent of GDP
C) is very interest sensitive
D) is greatly affected by stock market activity
E) all of the above
Correct Answer:
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Q1: According to the permanent-income theory, if individuals
Q2: The permanent-income theory of consumption implies that
A)the
Q4: Assume a worker at age 25 with
Q5: If we compare the life-cycle theory of
Q6: The life-cycle theory of consumption implies that
A)the
Q7: The permanent-income theory of consumption asserts that
Q8: The debate about different consumption theories can
Q9: If you are age 20, have no
Q10: When the aggregate consumption function is defined
Q11: According to the life-cycle theory of consumption,
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